The share price of UK-listed brokerage and wealth management house Charles Stanley fell sharply today – and was down almost 9 per cent at the time of writing – after the firm issued a results warning.

The share price of UK-listed brokerage and wealth management house Charles Stanley fell sharply yesterday – and was down almost 9 per cent mid-afternoon – after the firm issued a results warning. The price was 306.94 pence per share around 14:00 BST on Monday, the lowest for more than 21 months. However, the price recovered some ground to close at 310 pence per share.

“Whilst management have taken actions to reduce the cost base and boost income the board now expects that, barring a significant improvement in the markets, trading results will be materially below current market expectations,” Charles Stanley said in a statement.

The company reported interim statements including results for the three months ended on 30 June on 23 July.

At that time, it said “poor performance of commission income caused by low transaction volumes, and the continuation of costs relating to the upgrading of quality of service and the roll out of our direct to client proposition, all put pressure on profit margins”. Charles Stanley said today that “this trading pattern has continued through July and August”.

Total client funds stood at £20.5 billion ($33.1 billion) at 31 August up by 1.9 per cent from the level on 31 March.

“The board remains particularly encouraged by the rate of progress of Charles Stanley Direct which has increased its assets by 18 per cent to £900 million billion over the same five month period to 31 August 2014,” it said.

Separately, the firm announced today that after a review, it has decided to dispose of the FP Matterley Undervalued Assets Fund, agreeing terms with Miton Group for an undisclosed fee to take over the investment management and ownership of the fund.

In the coming weeks both Charles Stanley and Miton Group Plc will inform shareholders of the fund to give further details. The fund was launched in August 2008; it has delivered returns of 122 per cent since inception, almost double those of the UK All Companies Sector.

Going forward, the investment management of the fund will be assumed by Miton Group fund managers George Godber and Georgina Hamilton.

“In disposing of the fund to Miton Group Plc at this point, we can now concentrate our resources on our existing funds in the Matterley division and also provide capital for further fund launches,” Mike Lilwall, group director of Charles Stanley, said.

Charles Stanley will continue to own, manage and promote four remaining Matterley Funds: FP Matterley Regular High Income Fund; FP Matterley International Growth Portfolio; FP Matterley Equity Fund, FP Matterley UK & International Growth Fund.