25th Jun 2015 07:10
LONDON (Alliance News) - Walker Crips Group PLC Thursday said trading activity in the first few weeks of its new financial year has been strong.
News of the financial services group's start to the new financial year came as it said that pretax profit fell to GBP439,000 in the year ended March 31 from GBP2.5 million in the prior year, when earnings included a GBP1.8 million gain on disposing of investments.
Operating profit fell to GBP215,000 from GBP470,000, as the difference between revenue and commission to be paid by the group increased by 9% to GBP15.3 million and administrative expenses rose by 11% to GBP15.1 million. Expenses included the GBP329,000 cost related to buying investment manager Barker Poland Asset Management LLP, its first acquisition in a decade, and winding down its short-term lending fund.
Walker Crips, which has become increasingly focused on investment and wealth management, selling off its non-core subsidiaries in 2012 and 2013 to evolve from being a traditional private client stockbroker, said further progress had been made in its effort to become an asset gatherer. Discretionary and advisory assets under management increased by 50% to GBP2.0 billion, boosting revenue to GBP23.0 million from GBP20.7 million, with broking income rising to GBP10.2 million from GBP9.9 million.
"As the UK economic recovery continues, supported by political stability after the decisive general election, we are confident that the group is well positioned to continue making strides, which will produce higher dividends and added value for the benefit of shareholders," Chairman David Gelber said in a statement.
"Despite increasing competition and significant regulatory initiatives, including MIFiD II over the next 18 months, it is our emphasis on service and integrity which will drive our public profile and competitive positioning to deliver underlying growth in the next phase of the group's development," Gelber said.
MIFiD II, the revision of the Markets in Financial Instruments Directive, is a set of European reforms for financial markets, covering market structures, transparency and investor protection.
Walker Crips increased its dividend to 1.70 pence per share from 1.57p.
The stock is untraded early Thursday at 45.50p.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Walker Crips