Charles Stanley pre-tax profits up 57% despite assets decline

Restructure costs at £3.5m to date

Charles Stanley posted growth in profit before tax of 57% in the year to 31 March 2020, despite the funds under management and administration (FUMA) falling 16% to £20.2bn as a result of the coronavirus pandemic’s impact on markets.

Revenue also grew across all three divisions of the business, up 11.5% on the previous year, although the financial planning arm saw another net loss, with its £8.7m revenue unable to outweigh costs of £13.8m. Update: Charles Stanley restructure will 'almost certainly' lead to more job cuts However, Charles Stanley CEO, Paul Abberley, attributed this to recently hired financial planners having not yet reached "equilibrium", a process which can take "up to two years" as they develop a full book of clients. "The underlying business model is profitable and I should stress that we view...