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25 Jan 2012 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
25 January 2012
QUARTER ENDED 31 DECEMBER 2011
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 2011 to 25 January 2012, and includes trading results for the three months ended 31 December 2011.
Charles Stanley Group PLC announces that its third quarter revenues for the three months to 31 December 2011 were £27.3 million (2010/11: £32.3 million). This is a continuation of the trend communicated in the half year statement which set out the downward pressures on revenues, although within this result total fees have increased compared to the same period last year.
Total fees increased by 5.8% to £16.6 million (2010/11: £15.6 million) for the third quarter. Fee income has increased despite the fall in market values since December 2010 reflecting the on-going success in increasing fee income as a proportion of total revenue.
However commission income at £10.6 million (2010/11: £16.6 million) has decreased by £6.0 million compared to the same period last year due to reduced bargain volumes caused by the poor trading environment, Euro uncertainty and depressed UK economy. A continuation of the difficult institutional securities market is also reflected in this result.
Total client funds at £14.48 billion have demonstrated underlying organic growth over the nine months of the financial year to date despite difficult trading conditions, and remain comparable to March 2011 levels (£14.50 billion). Within this result managed funds have been the main driver of organic growth delivering a net increase of 8.6% compared to a market performance of -6.2% in the same period.
Funds under management and administration are analysed below:
Dec 11 |
Sep 11 | Change since Sep 11 |
Mar 11 | Change since Mar 11 | |
£ billion | £ billion | % | £ billion | % | |
Discretionary funds | 4.70 | 4.42 | 6.3% | 4.61 | 2.0% |
Advisory managed funds | 2.67 | 2.60 | 2.7% | 2.59 | 3.1% |
Total managed funds | 7.37 | 7.02 | 5.0% | 7.20 | 2.4% |
Advisory dealing funds | 2.87 | 2.79 | 2.9% | 3.03 | (5.3%) |
Execution only funds | 4.24 | 3.90 | 8.7% | 4.27 | (0.1%) |
Total administered funds | 7.11 | 6.69 | 6.3% | 7.30 | (2.6%) |
Total funds under management and administration |
14.48 |
13.71 |
5.6% |
14.50 |
- |
FTSE 100 index | 5,572 | 5,128 | 8.6% | 5,908 | (5.7%) |
FTSE all share index | 2,858 | 2,654 | 7.7% | 3,067 | (6.8%) |
APCIMS benchmark | 2,894 | 2,735 | 5.8% | 2,984 | (3.0%) |
Total managed funds increased by 5.0% during the quarter and by 2.4% since the beginning of the financial period. The change since March 2011 is explained in more detail in the table below:
Discretionary managed | Advisory managed |
Total |
Change | |
£ bn | £ bn | £bn | % | |
Managed funds at 1 April 2011 | 4.61 | 2.59 | 7.20 | |
Inflows | ||||
New clients of existing investment managers | 0.28 | 0.08 | 0.36 | |
Clients of new investment managers | 0.01 | 0.25 | 0.26 | |
New funds from existing clients | 0.43 | 0.20 | 0.63 | |
Total inflows | 0.72 | 0.53 | 1.25 | 17.4% |
Outflows | ||||
Lost clients | (0.17) | (0.20) | (0.37) | |
Withdrawals by existing clients | (0.17) | (0.09) | (0.26) | |
Total outflows | (0.34) | (0.29) | (0.63) | (8.8%) |
Net inflow of funds | 0.38 | 0.24 | 0.62 | 8.6% |
Market movement | (0.29) | (0.16) | (0.45) | (6.2%) |
Managed funds at 31 December 2011 | 4.70 | 2.67 | 7.37 | |
% increase in period | 2.0% | 3.1% | 2.4% | |
REVENUE
Quarter ended 31 December 2011
Private Clients £'000 |
Financial Services £'000 | Charles Stanley Securities £'000 |
Other £'000 |
Total £'000 | |
Commission | 9,808 | 80 | 808 | - | 10,696 |
Fees | |||||
Investment Management | 7,399 | 107 | - | - | 7,506 |
Administration | 5,933 | 2,438 | 77 | - | 8,448 |
Corporate Finance | - | - | 612 | - | 612 |
Other | - | - | - | 5 | 5 |
Total fees | 13,332 | 2,545 | 689 | 5 | 16,571 |
Total | 23,140 | 2,625 | 1,497 | 5 | 27,267 |
Quarter ended 31 December 2010
Private Clients £'000 |
Financial Services £'000 | Charles Stanley Securities £'000 |
Other £'000 |
Total £'000 | |
Commission | 14,332 | 52 | 2,274 | - | 16,658 |
Fees | |||||
Investment Management | 7,386 | 117 | - | - | 7,503 |
Administration | 5,608 | 1,759 | - | - | 7,367 |
Corporate Finance | - | - | 782 | - | 782 |
Other | - | - | - | 5 | 5 |
Total fees | 12,994 | 1,876 | 782 | 5 | 15,657 |
Total | 27,326 | 1,928 | 3,056 | 5 | 32,315 |
Nine months ended 31 December 2011
Private Clients £'000 |
Financial Services £'000 | Charles Stanley Securities £'000 |
Other £'000 |
Total £'000 | |
Commission | 34,412 | 247 | 3,181 | - | 37,840 |
Fees | |||||
Investment Management | 22,047 | 367 | - | - | 22,414 |
Administration | 17,391 | 7,808 | 205 | - | 25,404 |
Corporate Finance | - | - | 1,813 | - | 1,813 |
Other | - | - | - | 71 | 71 |
Total fees | 39,438 | 8,175 | 2,018 | 71 | 49,702 |
Total | 73,850 | 8,422 | 5,199 | 71 | 87,542 |
Nine months ended 31 December 2010
Private Clients £'000 |
Financial Services £'000 | Charles Stanley Securities £'000 |
Other £'000 |
Total £'000 | |
Commission | 40,412 | 176 | 5,637 | - | 46,225 |
Fees | |||||
Investment Management | 20,332 | 331 | - | - | 20,663 |
Administration | 16,512 | 5,932 | - | - | 22,444 |
Corporate Finance | - | - | 2,720 | - | 2,720 |
Other | - | - | - | 54 | 54 |
Total fees | 36,844 | 6,263 | 2,720 | 54 | 45,881 |
Total | 77,256 | 6,439 | 8,357 | 54 | 92,106 |
For further information please contact:
Charles Stanley Group PLC Canaccord Genuity
James Rawlingson, Director Simon Bridges/Martin Green
Michael Lilwall, Director Phone: 020 7050 6500
Magnus Wheatley, Head of Press & Public Relations
Phone: 020 7149 6273
Email: magnus.wheatley@charles-stanley.co.uk
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.
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