Despite a reluctance by both institutional and private clients to trade in the current climate, Charles Stanley's private funds under management grew 4.4 per cent year-on-year to £14.6bn - crucially, there was a £270m net fund inflow. But the group still faced significant headwinds and profits fell as commission income shrank, both on the corporate side and from the private client arm. Add that to the uncertain financial market backdrop and the share look up with events.
Chairman Sir David Howard again served up some scathing comments about the Financial Services Compensation Scheme - compensation payments drained £1.6m from profits. On the private-client side, meanwhile, fee income rose 6.2 per cent to £53.1m but this was offset by an £8.6m fall in commission income to £47.4m. Moreover, the corporate broking side also suffered, with institutional commissions declining 36.6 per cent and corporate finance income 4.7 per cent lower. However, the financial services side, which includes employee benefits and pension administration services, saw revenue rise from £9.4m to £11.6m.
Peel Hunt has downgraded its forecasts for 2013 by 22 per cent to adjusted pre-tax profit of £13.2m and EPS of 20.7p (2012: £12.5m/19.8p).
| CHARLES STANLEY (CAY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 248p | MARKET VALUE: | £ 112m | |
| TOUCH: | 240-248p | 12-MONTH HIGH: | 350p | LOW: 240p |
| DIVIDEND YIELD: | 4.6% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 180p* | NET CASH: | £41.7m | |
| Year to 31 Mar | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|
| 2008 | 12.4 | 20.9 | 8.60 |
| 2009 | 9.21 | 14.7 | 8.75 |
| 2010 | 10.3 | 15.4 | 9.45 |
| 2011 | 13.4 | 21.4 | 10.8 |
| 2012 | 8.48 | 13.1 | 11.3 |
| % change | -37 | -39 | +5 |
Ex-div:27 Jun Payment:03 Aug *Includes intangible assets of £34.6m or 76p a share | |||
