Charles Stanley warns rising costs to cause 10% profit miss

Charles Stanley's pre-tax profits are likely to fall 10% short of market expectations due to rising costs, the wealth manager has warned.

In a note ahead of its full year results on 20 June, the firm said outgoing costs had continued to rise, and added that while revenues were well ahead of expectations, profits would be hit. It also blamed "cost items of an exceptional nature". Charles Stanley said the costs had come during a “year of transition” when the business has invested in its foundations to secure future growth. It added post-Retail Distribution Review work and other professional fees represented some of the one-off costs. Additional IT systems and risk management expenses were also listed. The firm added t...