Charles Stanley has seen revenues at its financial planning division jump 20 per cent over the six months to the end of September.
Results released this morning show that the discretionary fund manager and platform provider made “continued investment in the expansion of the financial planning division”, generating turnover of £3.5m compared to £2.9m for the same period last year.
However, the financial planning division still turned a loss for the firm of £1.7m, compared to £7m profit for investment management services.
Charles Stanley says costs increased in financial planning because the firm has “invested in its capacity”.
Charles Stanley is one of a number of DFMs that also has in-house advisers. Others include Brooks Macdonald, Brewin Dolphin and Tavistock.
Charles Stanley’s results do not provide an indication of what proportion of flows into its DFM solutions come from in-house financial planners.
Chief executive Paul Abberley says: “Whilst the progression of our revenues and profit margin has been pleasing, we are fully focused on increasing the rate of improvement. In tandem with the efforts to improve the rate of top line growth by building higher margin assets and implementing revised pricing structures, we are also sharpening our investment capabilities in marketing and sales.”
Direct to consumer platform Charles Stanley Direct scraped into a profit of £200,000.
The firm sold its Sipp and SSAS arm EBS Management to Embark last year, which was accounted for in its financial planning division.