CAY.L Regulatory News (CAY)

25 April 2016

Charles Stanley Group PLC

Proposed office move

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today announces that it has entered into a new lease agreement for 47,000 sq ft of office space at 55 Bishopsgate. The new offices will allow the Group to consolidate a number of its London office locations, including staff currently based at 131 Finsbury Pavement, into a central site, and decommission peripheral London offices nearing the end of their existing leases.

The Group expects the move will enhance communication and working synergies across front, middle and back office departments, whilst providing a professional reception for clients in the heart of the Square Mile. The relocation is expected to commence in Q4 2016, and the Group will aim to have all staff in place at their new offices by Q1 2017.

The Group expects to incur non-recurring charges in respect of overlapping rent and occupancy costs of £2.7m for the financial year ending 31 March 2017. The majority of the costs incurred in connection with fitting-out the new offices will be capitalised and amortised over the term of the lease.

The ongoing net occupancy costs for the Group's London offices are expected to increase by around £1m per year from FY2018. This amount would have been higher if the existing lease for 131 Finsbury Pavement had been extended and other London offices maintained.

As part of the London offices consolidation, the Group intends to place the remaining 40 year lease at 35 Luke Street occupying 15,000 sq ft on the market for sale. The proceeds from the sale of this 40 year lease are expected to off-set the one-off charges noted above.

Paul Abberley, Chief Executive Officer of Charles Stanley Group PLC, commented:

"We are confident that the relocation and consolidation of a large proportion of our London staff into a central site will enable our professional and support teams to work together more efficiently and place us in good stead to better serve our clients' needs."

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Notes to editors:

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

Charles Stanley Group today provides bespoke wealth management services to private clients, charities and smaller institutions. These are delivered by over 450 professionals located in 24 offices throughout the UK, both direct to client and to intermediaries. Our services include investment portfolio management and financial planning, supported by in-house administration and custody for investment portfolios, SIPPs and ISAs to enhance the quality of service provided. In addition, Charles Stanley Direct provides an award winning direct to customer execution-only dealing platform for equities and funds.