CAY.L Regulatory News (CAY)

INTERIM MANAGEMENT STATEMENT

25 January 2013

QUARTER ENDED 31 DECEMBER 2012

This statement is an Interim Management Statement ("IMS") issued in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It covers the period from 1 October 2012 to 25 January 2013, and includes trading results for the three months ended 31 December 2012.

Charles Stanley Group PLC is pleased to announce that total client funds now stand at a record £16.36 billion reflecting an increase of 4.6% from the figure of £15.64 billion at 30 September 2012. Within this figure discretionary managed funds increased by 7.1% from £5.35 billion to £5.73 billion. Over the same period the FTSE 100 Index and the APCIMS Balanced Portfolio Index rose by 2.7% and 1.6% respectively.

Revenue increased by 13.5% in the third quarter of the financial year to £31.1 million from £27.4 million for the equivalent period last year. This is a good result but reflects a comparison with what was a very poor quarter last year. Challenging market conditions and economic uncertainty had depressed financial activities and transaction volumes in the three months to December 2011. Revenue for the nine months to 31 December 2012 was 3.4% higher than for the equivalent period last year.

Since the downturn in the period from September to December 2011 transaction volumes have now stabilised. Against this backdrop we have seen a 14.1% increase in commission revenue in this quarter compared with the same quarter last year. At the same time our fee income has increased, recording a 13.1% rise over the comparable period in the last financial year. Fee income represented approximately 61% of our revenue over the period. This improvement in revenue occurred across all divisions with Financial Services posting an increase of 14.8% and Charles Stanley Securities an increase of 16.2% compared with the same quarter last year.

We anticipate that economic and market conditions will remain uncertain but are confident that our broadly based business mix and financial strength will allow us to continue to produce a creditable performance.

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Funds under management and administration are analysed below:

Total managed funds increased by 4.7% during the quarter and by 8.6% since the beginning of the financial period. The change since March 2012 is explained in more detail in the table below:

REVENUE

Quarter ended 31 December 2012

Quarter ended 31 December 2011

Nine months ended 31 December 2012

Nine months ended 31 December 2011

*Comparatives for the Financial Services Division have been increased by £121,000 and £330,000 to reflect the correct treatment of gross fees.

Notes for editors

Charles Stanley Group PLC has five trading companies, Charles Stanley & Co. Limited, EBS Management PLC, CS Financial Solutions Limited, Garrison Investment Analysis Limited and Jobson James Financial Services 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. CS 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. Jobson James Financial Services Limited provides wealth management advice and services for both private and corporate clients including pensions and retirement planning.

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