Charles Stanley to raise £16m and cut divi in drive to 'modernise'

Charles Stanley is to raise £15.8m through a share placing as part of plans to "modernise" and refocus the business following a strategic review.

New chief executive Paul Abberley (pictured) is leading the review, which will see the group become focused “entirely on wealth management” and target an operating margin of 15% by 2018, it said today. The company will cut its total dividend by 60%, from 12.25p in 2014 to a total of 5p this year, and use the placing as a means of boosting capital reserves and preparing for an overhaul of the business. As part of this restructure, the firm reaffirmed it is in negotiations to sell its securities business and confirmed it is also in discussions to offload its smaller employee benefits ar...