British wealth manager Charles Stanley in its interim results revealed that the three years restructuring project will cost approximately £9.5m, before yielding annualised savings of £4.5m.
As part of the plan announced in May this year, Charles Stanley is overhauling its management structure, back and middle office systems, and tech processes.
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Initial signs of the business restructuring, according to the wealth manager, are positive as profit before tax surged 58.8% to £8.1m in the six months to the end of September 2019.
Funds under management and administration (FuMA) rose by 2.1% to £24.6bn, with discretionary funds up by 6.1% to £13.9bn.
In its interim results, the company noted that revenue growth in all three divisions contributed to 9.9% increase to £85.4m, compared to £77.7m a year ago.
Its expenditure ‘remained well controlled’ at £75.4m, an increase of 4.1% over £72.4m a year ago.
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By GlobalDataCommenting on the performance, Charles Stanley CEO Paul Abberley said: “This is an encouraging set of results. The increase in profits demonstrates that the hard work of recent years is now bearing fruit.
“The comprehensive repricing project, completed last March, and our continued shift towards higher margin services have been the key drivers of profit growth. The business transformation programme that is underway is focused on improving the group’s distribution capability and streamlining operational processes.
“In the short term, it will temper profitability given the costs, but will establish a stronger platform for long-term, sustainable growth.
“We are confident of further progress in the second half,” Abberley added.
