CAY.L Regulatory News (CAY)

31 July 2015

INTERIM MANAGEMENT STATEMENT

QUARTER ENDED 30 JUNE 2015

Charles Stanley Group PLC (the "Group") today issues a trading update including trading results for the three months ended 30 June 2015.

At the quarter end, total client funds were £20.8 billion, comprising Managed funds of £12.0 billion and Administered funds of £8.8 billion. Managed funds have increased 4.3% (Q1 2014: £11.5 billion and total funds have increased by 3.3% (Q1 2014: £20.1 billion). This compares with a 3.3% decline to the FTSE 100 Index over the same period and 3.7% increase to the WMA Balanced Portfolio Index.

Revenues from continuing activities for the first quarter increased 4.9% to £36.3 million (Q1 2014: £34.6 million) and total revenues, which include those of Charles Stanley Securities and Charles Stanley Financial Solutions, which at the end of the quarter were both Held for Sale, increased by 3.5% to £38.6 million (Q1 2014: £37.3 million). Completion of the sale of Charles Stanley Securities took place shortly after the end of the quarter on 15 July 2015.

We have previously reported upon the progress of our Suitability Project, upgrading of systems and record-keeping, to ensure that we know and understand our clients' requirements, in turn to be able to provide them with suitable investment management services and to evidence as much. The project has been successfully executed and completed on schedule. Over the course of the past year this was a significant undertaking both for staff and clients alike, but one which we are confident will yield dividends over the longer term.

On 9 July 2015 the Group was pleased to announce the appointment of Andrew Didham as a non-executive director, subject to regulatory approval. Andrew is a member of the board of NM Rothschild & Sons Ltd and was Group Finance Director of the worldwide Rothschild group for 16 years from 1997 to 2012. Andrew brings a breadth and depth of experience at a very senior level which will be invaluable as the company moves forward.

Our strategic intent is to focus on vertically integrated, or holistic wealth management, built around an investment led, bespoke approach to client delivery. Our ambition is to be a leading UK wealth manager by 2020, however in the shorter-term we are focused on building the operating margin to at least 15% in 2018 and then further beyond that.

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FUNDS UNDER MANAGEMENT AND ADMINISTRATION

The change in FUM since March 2015 is explained in more detail in the tables below:

REVENUE

The tables below set out the revenues of the Group for the quarter ended 30 June 2015 and prior year comparative.

As indicated in the Preliminary Statement of results published on 18 June 2015, as part of the execution of the Board's strategy, the Group has reorganised its divisional structure into Investment Management (comprising all its bespoke private client investment management services), Asset Management (comprising our central asset management teams of Matterley, Collectives Portfolio Service and Pan Asset together with our central investment research team), Financial Planning and Charles Stanley Direct. Charles Stanley Securities and Charles Stanley Financial Solutions are treated as Held for Sale. The tables below, showing revenues for the quarter ended 30 June, reflect this revised structure and form the basis upon which the Group will report divisional information going forward.

Quarter ended 30 June 2015

Quarter ended 30 June 2014

About Charles Stanley Group PLC

Charles Stanley was established in 1792 and is one of the oldest firms on the London Stock Exchange.

Charles Stanley Group today provides bespoke portfolio management mainly to private clients, delivered by over 450 professionals located in 28 offices throughout the UK. To enhance the quality of our service to clients we operate in-house administration and custody for investment portfolios, SIPPs and ISAs and have developed Charles Stanley Direct, an award winning direct to customer execution-only dealing platform for equities and funds.

Charles Stanley operates a number of complementary financial services businesses which are available to our core investment management clients. These businesses offer financial planning services, fund management and employee benefit consultancy.