Charles Stanley Reduces Revenue Forecast

Nick Parmee 1 October 2008

Charles Stanley Reduces Revenue Forecast

London-listed private client stockbroker Charles Stanley has stated that its overall revenues for the six months to 30 September 2008 are expected to be approximately 7 per cent lower than for the comparable period in 2007.

Despite difficult market conditions, the private client division (which represents more than 85 per cent of total income) has seen only a marginal reduction in revenues, largely as a result of continued growth in fee income. But the group has seen a significant decline in income in its corporate advisory and institutional broking business Charles Stanley Securities, where revenues have declined by approximately 40 per cent, principally owing to a reduction in corporate transactions.

During the first half the group completed the acquisitions of Truro Stockbrokers and the UK private client stockbroking business of Insinger de Beaufort. These acquisitions are expected to make a positive contribution within the current financial year.

The revenue falls, coupled with the costs of the acquisition programme, suggest that group profits for the first six months, before tax, will be broadly similar to the second half of the year to 31 March 2008, though lower than the equivalent period last year (to 30 September 2007). A fuller statement will be made with the interim results, which are expected to be announced in mid November.

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