Tough times for Collins Stewart

THE chief executive of Collins Stewart, Joel Plasco (pictured) visited the firm’s offices in Jersey and Guernsey last week to speak to staff.

Earlier this month the group announced that they had received a takeover bid and that talks were at an early stage.

Last week the company also announced an 82 per cent drop in pre-tax profits to £9.6 million, down from £52 million a year ago, and warned that trading would be tough into 2009.

The wealth management division, which employs over 200 people in Jersey, Guernsey, the Isle of Man and London, achieved operating profit of £5.7 million, down from £6.7 million last year. The board said that the 15 per cent drop was due to reduced private client trading activity and performance fees and following the sale of the property fund management business in the second half of last year. Profits also fell because of increased spending on marketing and advertising.

Mr Plasco said that his main message to Channel Island staff was that the company was now more resilient than ever. ‘Despite what the press are saying, we are still a profitable and cash-generative business,’ he said.

‘The markets are going through the worst financial crisis since the 1930s and I wanted to thank the staff here for the great effort they have made.’

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