Charles Stanley revenue slips to £27.3m as downtrend bites

Charles Stanley's revenue has slipped from £32.3 million to £27.3 million, as downward pressures caused by the difficult trading environment persist.

Shares in the stockbroker fell to 230.6p following its interim announcement, a drop of 26.5 basis points or 9.7%.

The report covering the three months to the end of December also revealed a drop in commission income from £16.6 million to £10.6 million.  The reduction was triggered by reduced 'bargain volumes', the company said, caused by the ongoing uncertainty surrounding the euro crisis, the poor trading environment and depressed UK economy.

'A continuation of the difficult institutional securities market is also reflected in this result,' Charles Stanley added.

But a brightspot in the stockbroker's quarterly report to investors was continued underlying growth in client funds over recent months.

The stockbroker said: 'Total client funds at £14.48 billion have demonstrated underlying organic growth over the nine months of the financial year to date despite difficult trading conditions,'

Client funds have remained comparable to March 2011, when they stood at £14.5 billion.