Walker Crips, the integrated financial services group, admitted that trading during the third quarter remained weak, with group net revenue down 9.8% to £3.76m.
The firm attributed this, in part, to the fact equity market volumes remained relatively low.
Overall funds under management (FuM) at December 31st decreased to £612m (September 30th 2011: £698m; December 31st 2010: £753m).
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This occured despite the fact WCAM, the company's asset management subsidiary, increased its UK-based FuM by 8.1% over the quarter to £612m at December 31st 2011, with fee revenues correspondingly higher.
Non-broking income as a proportion of total income over the quarter was unchanged at 61% as the group continued to focus on reducing its reliance on volatile commission revenues, which fell by 28.7% to £1.74m (2010: £2.24m) due again to more subdued equity markets.
"The reduction in overall FuM and the continuing difficult trading conditions being experienced generally in the financial sector are likely to result in group profitability for the year to March 31st 2012 being lower than expectations," the group said in a statement, adding that the firm "remains in a healthy financial position".
The share price fell 14.77% to 37.5p by 11:36.
NR
