Walker Crips’ Operating Profit Dropped 89% in FY 2024, AUM Falls Over 13%

Walker Crips Group plc (WCW), a provider of investment management, wealth management services, pensions administration, and regulatory technology, has released its audited financial results for the fiscal year ending March 31, 2024. The company's total revenues remained relatively stable at £31.57 million, a slight decrease from £31.61 million in the previous year.

However, the company experienced a significant decline in profitability. Operating profit dropped by 89.9% to £63,000, compared to £625,000 in the previous year. Profit before tax also saw a notable decrease, falling 38.8% to £387,000, down from £632,000 in 2023.

Adjustments and Financial Metrics

After accounting for exceptional items, the Group reported an operating loss of £162,000, contrasting sharply with the previous year's operating profit of £1,179,000. The profit before tax, after adjustments, stood at £162,000, a steep decline from £1,186,000 in the prior year.

The adjusted EBITDA also reflected the challenging year, decreasing by 45.4% to £1.77 million from £3.25 million in 2023. Underlying cash generated during the year was £2.30 million, a 31.6% reduction from £3.36 million in the previous year. Despite these challenges, the Group's cash and cash equivalents increased to £13.86 million, up from £13.14 million in 2023.

Additionally, the company's Assets Under Management (AUM) decreased by 13.5% to £2.7 billion, down from £3.1 billion in the prior year. This decline in AUM reflects the broader market challenges and investor sentiment during the period.

Strategic Initiatives and Outlook

Looking ahead, Walker Crips Group has been actively enhancing its financial crime framework. The company successfully integrated these improvements into its daily operations, as overseen by the Chief Risk and Compliance Officer and supported by external advisers. The Group is now undertaking a comprehensive review of its Compliance, Risk, Suitability, and Monitoring functions, as well as the adoption of Consumer Duty regulation. This initiative aims to establish a robust future state for risk and compliance management within the company.

This strategic review is expected to be linked with additional business planning and change management resources. The Group plans to develop a comprehensive and integrated plan for the entire organization, with the majority of this work anticipated to be completed in the financial year 2025.