CAY.L Regulatory News (CAY)

INTERIM MANAGEMENT STATEMENT

23 July 2014

QUARTER ENDED 30 JUNE 2014

This statement is an Interim Management Statement ("IMS") in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It covers the period from 1 April 2014 to 22 July 2014, and includes trading results for the three months ended 30 June 2014.

Charles Stanley Group PLC announces that total revenue for the three months to 30 June 2014, the first quarter of its financial year 2014/15, increased slightly compared with the equivalent period last year at £37.3 million (June 2013: £36.9 million).

Although total revenues are slightly above prior year levels the Directors are disappointed by the poor performance of commission income which has been impacted by a drop in transaction volumes and has decreased by 16.4% to £12.7 million (June 2013: £15.2 million). This drop in commission income was more than offset by a 13.4% rise in fee income - up from £21.7 million to £24.6 million. Investment management fee income in particular increased by 21.0%, from £10.0 million to £12.1 million, reflecting the changes to our charging structure introduced last year.

As explained in our year end statement, 2014 was a year of significant cost and investment in our future. In particular profitability was impacted by the acquisition of teams of investment managers, the continuing roll-out of the direct-to-client web-based service Charles Stanley Direct, and a major programme of upgrading the quality of service of our principal business of discretionary and advisory investment management. This investment in our business has continued into the current year and will continue to have an effect on margins.

Total client funds stand at £20.14 billion, an increase of 0.2% from £20.09 billion recorded at 31 March 2014. Within this figure discretionary managed funds increased by 3.2% from £8.2 billion to £8.5 billion reflecting a net inflow of funds during the period. Client funds also include £1.52 billion of funds under administration for the Charles Stanley Direct division and during the quarter this division saw a net inflow of funds of 4.9%. Over the same period the FTSE 100 Index and the WMA Stock Market Balanced Index increased by 2.2% and 1.3% respectively.

Total revenues remain stable but due to the cost of continuing investment in our future together with falling commission revenues, we approach the coming months with considerable caution.

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REVENUE

Quarter ended 30 June 2014

Quarter ended 30 June 2013

Funds under management and administration are analysed below:

Funds under management increased by 2.5% during the quarter and this change is analysed in more detail in the following table.

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 a range of passive index tracking models and other model portfolios.

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