Charles Stanley beats forecasts with full-year numbers, raises payout

31st May 2019 07:56

(Sharecast News) - Charles Stanley posted better-than-expected full-year results on the back of a better-than-anticipated performance in UK equity markets that buoyed its funds under management and administration, bumping up its dividend payout in the process."However, given the extent of the equity market rally earlier this year, we anticipate much more modest returns over the remainder of the year," the company said in a statement."The long-term prospects for equities remain positive, but equities are likely to pause for breath until evidence of better economic growth emerges."For the year ending on 31 March, the private client investment management firm posted a 2.8% increase in reported revenues to £155.2m (Cannacord Genuity:£149.4m) as total funds under management and administration hit £24.1bn (Cannacord Genuity: £22.6bn).Together with an increase in its 'core' pre-tax margin from 8.8% to 9.2%, that drove a 6.4% rise in core business profits before tax to £11.6m (Cannacord Genuity: £10.1m).Core earnings per share printed at 17.74p (Cannacord Genuity: 15.7p), helped by a lowed than expected tax rate of 18.2% (Cannacord Genuity: 21.0%).Discretionary funds also increased, by 6.5% to £13.1bn.The firm also disclosed that it expected to incur in £9.5m of restructuring costs over the next two to three years, which were expected to yield annual savings in excess of £4.5m from 2022 onwards, with costs savings expected to start coming through immediately."The restructuring will result in a net charge to the Group's profit in the financial year ending 2020 but be positive thereafter," the company added.Charles Stanley was aiming for a medium-term profit margin of 15%.Cash on hand at period-end jumped by 23.7% to £81.2m, alongside an improvement in its capitao solvency ratio from 177% for 2018 to 214% in 2019.The full-year dividend meanwhile was hiked by 9.4% to 8.75p per share.-- More to follow --