14th Nov 2013 11:50
LONDON (Alliance News) - Charles Stanley Group PLC Thursday said it will buy asset adviser Evercore Pan Asset Capital Management Ltd for an undisclosed amount, a deal it expects to boost its offering to financial advisers and enable it to potentially launch new products.
In a separate statement, earlier on Thursday, Charles Stanley said its half-yearly pretax profit rose by 43% to GBP4.9 million, on the back of an increase in both fee and commission income that resulted in a 17% rise in revenues to GBP70.0 million. The stockbroker and financial advisory company said signs are looking favourable for the second half of the year.
Charles Stanley said it will pay an initial cash consideration and then further payments over the next year-to-18-months dependent on Pan Asset's performance. However, it didn't disclose financial details for the purchase.
Pan Asset, which provides asset allocation advice to pension funds, charities, universities and family wealth, had assets under management of GBP593 million at the end of October. It specializes in index tracking investments.
"The acquisition of Pan Asset will complement the company's existing distribution channels by broadening Charles Stanley's expertise and product offering into the area of passives, and in particular we foresee opportunities to enhance our increasing offering to the financial adviser marketplace," Charles Stanley Director Mike Lilwall said.
"Further opportunities include the provision of cost-effective pension products by combining the Pan Asset active management process with Charles Stanley and Charles Stanley Direct's services," he said.
Charles Stanley increased its interim dividend by 3.00p per share from last year's 2.75p interim dividend.
Charles Stanley shares were up 7.5% at 489.32 pence Thursday morning, one of the biggest risers on the main market.
By Steve McGrath; [email protected]; @stevemcgrath1
and Samuel Agini; [email protected] @samuelagini
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