Walker Crips reports doubling of profits

Added 30th June 2016

Walker Crips' year end results showed strong growth in pre-tax profit, AuM and gross revenue even after factoring in £0.8m in exceptional costs.

Walker Crips reports doubling of profits

Reported pre-tax profit more than doubled to £0.94m from £0.44m the previous year and gross profit saw a 15% increase to £17.6m, the firm announced.

Walker Crips also confirmed that group revenues had risen by 13.5% to £26.1m for the year ended 31 March 2016.

While the group incurred £0.8m in exceptional costs in order to revamp its client information systems, these were largely offset by the one-off sale of its illiquid Euroclear shares for £0.9m in December last year.

The company said its investment management arm’s AUM had “continued growing to unprecedented levels” against a backdrop of market uncertainty and falling indices. Assets under management and administration clocked in at £4.1bn, which the firm said is in line with its goal to reach £5bn AUMA by 2018. Gross revenues from the investment management division also increased by 14.8% to £23.6m, the company reported.

Walker Crips’ York-based wealth management arm saw a more modest growth in AUMA of £6m between 2015 and 2016, taking it to £501m at the end of the financial year. The firm claimed the division’s decrease in profitability was due to increased regulatory fees, provisions for potential claims and investment in back and mid-office support functions.

Nonetheless, the company confirmed it would raise its final dividend by 8.5%, resulting in a higher total dividend of 1.85p per share because of the surge in pre-tax profits.

Chairman of Walker Crips David Gelber, reflected: “Against a background of difficult markets, we have striven to set higher regulatory standards and client service levels as we deliver our strategy for growth.”

He added: “At a macro level the extent of the economic and political instability created by Brexit is difficult to predict.  In addition, at a micro level, we face significant demands from continuing regulatory initiatives and their associated costs over the next 18 months. We will monitor diligently the impact of these factors and will react promptly as we consider appropriate.”  

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