Charles Stanley revenues fall but fees hold up

Charles Stanley's third quarter revenues dropped for the three months to 31 December 2011 to £27.3m, from £32.2m during the same period the previous year, as trading conditions remain tough.

However, total fees have increased compared to the corresponding period by 5.8% to £16.6m (2010/11: £15.6m).

The group said fee income rose despite the fall in market values since December 2010, reflecting the on-going success in increasing fee income as a proportion of total revenue.

However, commission income of £10.6m fell by £6m from £16.6m during the same period the previous year. This was due to reduced bargain volumes caused by the poor trading environment, euro uncertainty and a depressed UK economy.

Total client funds at £14.48bn held up and were comparable to March 2011 levels of £14.50bn. Managed funds have been the main driver of organic growth, delivering a net increase of 8.6% compared to a market performance of -6.2% over the same period.