London wealth management company increases profits 45% after repricing rates
A wealth management company has increased its profit before tax by 45.1 per cent due to a repricing initiative.
Charles Stanley, headquartered in London, reported today that its underlying profit before tax has risen from £13.3m in 2019 to £19.3m this year.
The company also increased its revenue by 11.5 per cent in the past year, jumping from £155.2m to £173m.
This follows an “extensive” repricing exercise that was completed last year, which Charles Stanley credits for driving its underlying profit increase.
The company also said that the rise in revenue was due to growth in its investment management, direct and financial planning divisions.
Paul Abberley, CEO of Charles Stanley, commented: “These strong results reflect the benefits of our ongoing transformation programme.
“In particular, the substantial rise in profits was achieved by the repricing exercise completed last year to bring our rates into line with market.
“COVID-19 is now the major challenge for everyone globally.
“I am pleased to report that the group responded swiftly to safeguard the well-being of all our staff through remote-working while also maintaining a very high level of service to clients.
“Trading results for the new financial year are expected to be significantly impacted by the crisis, with lower stock market valuations and reduced interest rates.
“However, Charles Stanley is well positioned to navigate through the challenges and to emerge strongly.
“We have a very robust balance sheet with significant cash balances, and we will continue to focus on transformation and growth initiatives.”
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