30th Sep 2008 14:18
Charles Stanley Group plc ("Charles Stanley" or the "Group")
30 September 2008
Trading Update
Overall revenues for the six months to 30 September 2008 are expected to be approximately 7% lower than for the comparable period in 2007. Despite difficult market conditions, the Group's Private Client division (which represents more than 85% of total income) has seen only a marginal reduction in revenues, largely as a result of continued growth in our fee income. However, in common with the rest of the market, 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% principally due to a reduction in corporate transactions.
During the first half the Group has completed the acquisitions of Truro Stockbrokers and the UK private client stockbroker business of Insinger de Beaufort. These acquisitions are expected to make a positive contribution within the current financial year.
The reduction in revenues, coupled with the costs of the acquisition programme, suggest that the Group's profits for the first six months, before tax, will be broadly similar to the second half of full year to 31 March 2008, though lower than the equivalent period last year (to 30 September 2007). The Directors view this as a resilient performance in the current turbulent market conditions. Short term visibility is extremely limited, however the Directors believe that over the longer term the Group's capital strength and commitment to invest in people, processes and products position it strongly for the future.
A fuller statement will be made with the interim results, which are expected to be announced in mid November.
For further information please contact:-
Charles Stanley Group PLC Landsbanki Securities UK
Magnus Wheatley Simon Robinson
Public Relations Manager 020 7526 7705
020 7149 6273
[email protected] [email protected]
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