Charles Stanley has reported 80% growth in pre-tax profits to £3.6m following the implementation of its turnaround strategy, as it also announces the conclusion of its remuneration consultation with the investment management team.
In its interim results for the period from 1 April to 30 September, the firm said reported pre-tax profit was up 80% compared to £2m a year ago. The figure is quite an uplift from the decline in revenues reported earlier this year, which it blamed on "lower levels of activity".
The firm said the turnaround strategy consisted of strengthening the balance sheet and returning the group to profitability; disposing of non-core assets; focusing on core activities and reviewing the remuneration structures.
Funds under management and administration also rose from £20bn a year ago to £22.5bn.
Core business revenue in investment management saw a slight fall from £61.3m to £59.8m while financial planning and Charles Stanley Direct also saw falls in revenue. Asset management saw an increase in revenue from £2.8m to £3.1m.
The firm has also concluded a consultation of its remuneration processwith investment managers representing approximately 90% of funds under management and administration accepting the proposals.
Two schemes are in place, one for employed investment managers and one for self-employed associates and both will come into force at the beginning of the next financial year.
In a separate announcement about the company's Proposed Share Award Scheme, the group said it is seeking shareholder approval for the implementation of a new share plan of up to an additional 5% of the current issued share capital of the company.
"As partial consideration for the employed investment managers agreeing to enter into less attractive contractual terms than previous, and in part to align their interests more fully with those of shareholders in achieving profitable growth for the group, a condition of the proposals is the making of certain share awards to such investment managers," it said.
"These will be for up to 5% of the group's issued share capital and will be facilitated via a new employee share plan to be created for this purpose; the Charles Stanley Employed Investment Managers Share Plan."
Paul Abberley (pictured), chief executive of the firm, said: "The conclusion of the remuneration process is a significant milestone and marks the successful conclusion of the first stage of our turnaround strategy.
"We are maintaining momentum and the group is now in a healthier position on a more sustainable basis. With operational foundations in place and productivity initiatives underway, we are well positioned to pursue the second phase of our strategy, with an emphasis on building the delivery of organic growth."
The firm has seen a number of departures in recent months within its investment management team following the restructuring, which saw it bring together four of its asset management business: Pan Asset, CPS, Matterley and IHT.
Shauna Bevan, co-head of open-ended fund research, and Stephen Peters, investment manager and co-head of collectives research, departed the firm, as well as two other colleagues from the division.
