Shares in Walker Crips plummeted around 10 per cent after the financial services firm lowered its profit expectations for the year.
 

In its interim statement, the firm reported that trading levels in the period from 1 October 2011 to 31 December 2011 were weak as equity market volumes remained low.
 


Group net revenue for the third quarter declined 9.8 per cent to £3.39 million, from £3.76 million in the same period during 2010.
 


Funds under management in Walker Crips Asset Management’s (WCAM) core primary unit trust and UK-based funds run by Stephen Bailey and Jan Luthman was £612 million, up 8.1 per cent.
 


However, the last of WCAM’s non-core offshore funds, with assets under management (AUM) of £131 million, moved their administration in-house.
 


As a result of the move, overall AUM fell to £612 million at 31 December last year, down from £753 million the previous year.
 

The group warned, ‘Despite the increase in core FUM (funds under management) and related fee income, 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 31 March 2012 being lower than expectations.
 

‘However, the WCG board believes that the group’s diverse product range continues to underpin its profitable resilience to the current challenging environment.’
 


Walker Crips revealed that commission revenues were also hit by subdued equity markets, decreasing 28.7 per cent to £1.74 million.
 


Shares were trading down 9.2 per cent at 39.95p at 11.37am.