Charles Stanley reports profits surge

The company, which has an office in Leeds, reported an underlying pre-tax profit for the year to end March of £17.7m, up from £13.7m the year before.

“It seems likely that the infusion of liquidity by the government is driving debt reduction and asset build-up rather than an expansion of consumer spending; and this effect is mirrored at Charles Stanley in the inflows of cash from our existing client base,” said chairman David Howard.

Mr Howard said the future remained uncertain, citing doubts over the strength and timing of the UK recovery and the near and medium-term problems of the eurozone.

However, he noted the stock market had performed well and clients were continuing to garner more investment funds.

“My guarded feeling of confidence about the outlook remains undaunted,” Mr Howard said.

Funds under management increased by 13 per cent to £14.5bn while private client income rose by 10 per cent to £106m.

The company is paying a final dividend of 8.25p per share, making a total for the year of 10.75p per share, a rise of 14 per cent.