CAY.L Regulatory News (CAY)

Charles Stanley Group PLC

25 Luke Street

London

EC2A 4AR

T: 020 7739 8200

F: 020 7739 7798

DX: 123150 BROADGATE-1

www.charles-stanley.co.uk/investor-relations

INTERIM MANAGEMENT STATEMENT

24 January 2014

QUARTER ENDED 31 DECEMBER 2013

This statement is an Interim Management Statement ("IMS") issued by Charles Stanley Group PLC ("the Group") in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It covers the period from 1 October 2013 to 24 January 2014, and includes trading results for the three months ended 31 December 2013.

The Group recorded a pleasing performance in the quarter ended 31 December 2013. Revenue for the quarter increased 18.0% to £36.7 million from the £31.1 million recorded in the equivalent period last year; with a 12.9% increase in commission revenue and a 21.4% rise in fee income making up the overall revenue growth in the quarter. Our fee income represented 62.4% of the overall revenue which is in line with our strategy of diversifying our revenue base.

At the quarter end, total client funds reached a new record of £20.1 billion, an increase of 13.4% over the nine months since 31 March 2013. Over the same period, the FTSE 100 and the WMA Balanced Portfolio Index rose by 5.3% and 2.8% respectively. Particularly pleasing was the increase in managed funds from £9.3 billion to a new high of £11.1 billion.

We have recorded a good performance across all of our operating divisions. Revenue growth across Investment Management Services and Financial Services was 13.6% and 8.6% respectively. Charles Stanley Securities recorded a strong performance with improving sentiment in its sector producing revenue of £3.6 million, an increase of 106% from the equivalent period last year. Charles Stanley Direct is establishing itself well, experiencing growing numbers of customer acquisition and is well positioned to take full advantage of the developments taking place in its market. However, costs continued to rise during the period to support the growth of the Group and costs of the industry.

Consistent with our strategy of adding complementary businesses, in November 2013 the Group announced the acquisition of Evercore PAN Asset Capital Management Limited ("Pan Asset"). Pan Asset offers asset allocation advice across an extensive range of global asset classes and specialises in the use of passive (index tracking) investments. Pan Asset had assets under management of £580 million. We look forward to integrating Pan Asset and broadening further the scope of our services to clients.

For further information please contact:

REVENUE

Quarter ended 31 December 2013

Quarter ended 31 December 2012

Nine months ended 31 December 2013

Nine months ended 31 December 2012

FUNDS UNDER MANAGEMENT AND ADMINSTRATION

The change since March 2013 is explained in more detail in the tables below:

Notes for editors

Charles Stanley Group PLC has five trading companies, Charles Stanley & Co. Limited, EBS Management PLC, Charles Stanley Financial Solutions Limited, Garrison Investment Analysis Limited and Charles Stanley PAN Asset Capital Management 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. Charles Stanley Financial Solutions 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. Charles Stanley PAN Asset Capital Management Limited offers asset allocation advice across an extensive range of global asset classes and specialises in the use of passive (index tracking) investments.

All five trading companies are regulated by the Financial Conduct Authority. The Group has 33 offices around the United Kingdom.