27 Jan 2010 07:00
Charles Stanley Group PLC
25 Luke Street
London
EC2A 4AR
T: 020 7739 8200
F: 020 7739 7798
DX: 123150 BROADGATE-1
www.charlesstanleyplc.co.uk
INTERIM MANAGEMENT STATEMENT
27 January 2010
QUARTER ENDED 31 DECEMBER 2009
Charles Stanley Group PLC is pleased to announce that its revenue for the three months to 31 December 2009, the third quarter of its financial year 2009-10, was 5.2% higher, at £28.4 million, than the comparable figure of £27.0 million for the three months to 31 December 2008.
Since 30 September 2009 the business has continued to show resilience in what remain difficult trading conditions. The Group has seen a solid performance across all three divisions and has sought to strengthen the business with selective hires.
Total client funds under investment management or administration rose during the quarter by 4.3% from £11.6 billion at 30 September 2009 to £12.1 billion at 31 December 2009. Within this figure the funds under discretionary management increased by 5.7% from £3.5 billion to £3.7 billion. For the same period, the FTSE 100 strengthened by 5.4% from 5134 to 5413 and the FTSE APCIMS Balanced Portfolio Index by 2.5%.
The Group is well positioned across all its divisions should the economic recovery prove sustained. With a strong balance sheet Charles Stanley is well placed for future growth opportunities.
Dividend
The Board is recommending the payment of a second interim dividend of 5.00p. (2008/09: nil). It is at this stage the Board's intention to pay also a final dividend bringing the total dividend payment for the year to no less than last year's amount of 8.75p subject to market conditions.
A scrip alternative will be offered giving shareholders the opportunity to increase their shareholding without incurring dealing costs or stamp duty. Further details are set out at the end of this statement.
Quarter ended 31 December 2009
| Private Clients £'000 | Financial Services £'000 |
Charles Stanley Securities £'000 | Total £'000 | |
| Commission | 13,476 | 17 | 1,688 | 15,181 |
| Fees | ||||
| Investment Management | 5,172 | 100 | - | 5,272 |
| Administration | 5,378 | 1,841 | - | 7,219 |
| Corporate Finance | - | - | 745 | 745 |
| Other | - | - | - | 6 |
| Total | 24,026 | 1,958 | 2,433 | 28,423 |
Quarter ended 31 December 2008
| Private Clients £'000 | Financial Services £'000 |
Charles Stanley Securities £'000 | Total £'000 | |
| Commission | 11,423 | 30 | 2,067 | 13,520 |
| Fees | ||||
| Investment Management∗ | 6,847 | 20 | - | 6,867 |
| Administration | 4,160 | 1,641 | - | 5,801 |
| Corporate Finance | - | - | 812 | 812 |
| Other | - | - | - | 2 |
| Total | 22,430 | 1,691 | 2,879 | 27,002 |
* Includes £2 million relating to an over accrual of fees resulting from the ongoing fee project which took place throughout the year.
Nine months ended 31 December 2009
| Private Clients £'000 | Financial Services £'000 |
Charles Stanley Securities £'000 | Total £'000 | |
| Commission | 39,617 | 43 | 5,769 | 45,429 |
| Fees | ||||
| Investment Management | 16,262 | 203 | - | 16,465 |
| Administration | 13,850 | 5,985 | - | 19,835 |
| Corporate Finance | - | - | 2,561 | 2,561 |
| Other | 81 | |||
| Total | 69,729 | 6,231 | 8,330 | 84,372 |
Nine months ended 31 December 2008
| Private Clients £'000 | Financial Services £'000 |
Charles Stanley Securities £'000 | Total £'000 | |
| Commission | 33,996 | 72 | 5,953 | 40,021 |
| Fees | ||||
| Investment Management | 13,319 | 107 | - | 13,426 |
| Administration | 16,070 | 4,307 | - | 20,377 |
| Corporate Finance | - | - | 2,061 | 2,061 |
| Other | 79 | |||
| Total | 63,385 | 4,486 | 8,014 | 75,964 |
| Funds under management or administration | 31 Dec 2009 | 30 Sep 2009 | Change |
| £bn | £bn | % | |
| Discretionary funds under management | 3.7 | 3.5 | 5.7% |
| Advisory funds under management | 2.4 | 2.3 | 4.3% |
| Total funds under management | 6.1 | 5.8 | 5.2% |
| Advisory dealing funds | 2.6 | 2.6 | 0.0% |
| Execution only funds | 3.4 | 3.2 | 6.3% |
| Total administered funds | 6.0 | 5.8 | 3.4% |
| Total funds under management or administration | 12.1 | 11.6 | 4.3% |
Details of the scrip dividend, including an election form, will be sent to shareholders on 12 February 2010. If your shareholding is in uncertificated form in CREST (and was in uncertificated form as at the relevant record date), you can only elect to receive your dividend in the form of new shares by means of the CREST procedure to effect such an election.
| Date | Event |
| 27 January 2010 | Interim Management Statement announced |
| 3 February 2010 | Shares quoted ex-Dividend |
| 3 to 9 February 2010 | Dealing days for calculating the price of the new shares to be offered pursuant to the scrip |
| 5 February 2010 | Record date for the second interim dividend |
| 12 February 2010 | Details of scrip dividend posted to shareholders |
| 26 February 2010 | Final date for receipt of the scrip dividend mandate forms, electronic elections or CREST elections |
| 25 March 2010 | Dividend payment date, first day of dealing in the new shares |
| June 2010 | Final results announced |
For further information please contact
Charles Stanley Group PLC Canaccord Adams Ltd
Peter Hurst, Director Simon Bridges
Michael Lilwall, Director Phone: 020 7050 6500
Magnus Wheatley, Head of Press & Public Relations Oriel Securities Ltd
Phone: 020 7149 6273 Tom Durie
Email: magnus.wheatley@charles-stanley.co.uk Phone: 020 7710 7600
Notes for editors
Charles Stanley Group PLC has four trading companies, Charles Stanley & Co. Limited, EBS Management plc, Griffiths & Armour (Financial Services) Limited and Garrison Investment Analysis Limited.
Charles Stanley & Co. Limited provides full-service stockbroking, financial planning and benefit consultancy and small and mid cap advisory and institutional broking.
EBS Management plc provides specialist pensions administration services. Griffiths & Armour (Financial Services) Limited is a specialist provider of corporate employee benefits services. Garrison Investment Analysis Limited markets unit trusts, open-ended investment company units and packaged financial products to private clients, both directly and in wrappers such as ISAs and pensions.
All four trading companies are regulated by the Financial Services Authority. The Group has 32 offices around the United Kingdom.