15 Oct 2020 07:00
CAY.L
Charles Stanley Group PLC
("Charles Stanley" or the "Group")
Trading Update for the Three Months ended 30 September 2020 and Notice of Results
Charles Stanley, the wealth management services group, is pleased to provide a trading update for the second quarter of its financial year, covering the three months ended 30 September 2020.
Trading Update
Total Funds under Management and Administration ("FuMA") in the quarter increased by 0.9% to £22.8 billion against the prior quarter. This compared to a 0.4% decrease over the same period in the MSCI WMA Private Investor Balanced Index. Compared to the financial year-end position at 31 March 2020, FuMA were up 12.9%. However, this material movement mainly reflected the market disruption caused by the coronavirus pandemic, and average FuMA over the first half of £22.1 billion was 9.4% lower than average FuMA of £24.4 billion over the first half of last year.
Group revenue for the quarter decreased by 6.8% to £39.9 million (Q2 2020: £42.8 million), resulting in a 4.1% reduction over the first half to £82.0 million (H1 2020: £85.4 million). The relative outperformance of revenues over the six months by comparison to average FuMA is the result of an improved revenue margin, which increased by 4.4bps to 74.3bps (H1 2020: 69.9 bps) as discretionary funds increased to 59.7% of total FuMA (H1 2020:56.5%), fees and commissions were stable, aided by the growth of the Financial Planning division, and interest income declined.
Notice of Results
The Group's unaudited interim results for the six months ended 30 September 2020 will be published on 19 November 2020.
Paul Abberley, Chief Executive Officer of Charles Stanley, said:
"The Group has traded and operated resiliently during the first half. Our focus remains on supporting clients and staff during these difficult times, and we are confident of further progress during the second half."
Charles Stanley Group PLC LEI: 213800LBSEGKE5MCYC90
For further information, please contact:
Charles Stanley Siobhan Griffiths Via KTZ Communications | Canaccord Genuity David Tyrrell 020 7523 4677 | Peel Hunt Andrew Buchanan 020 3597 8680 | KTZ Communications Katie Tzouliadis 020 3178 6378
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Notes to editors:
Charles Stanley provides holistic wealth management services to private clients, charities, trusts and institutions. Its origins trace back to 1792 and the Group is one of the oldest firms on the London Stock Exchange. The Group has a national presence, with 26 locations and 850 professionals. Its wealth management services are provided direct to clients and to intermediaries
Funds under Management and Administration
| Sep 2020 | Jun 2020 | Mar 2020 |
| £bn | £bn | £bn |
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Discretionary funds | 13.6 | 13.4 | 12.0 |
Advisory managed funds | 1.2 | 1.3 | 1.2 |
Total managed funds | 14.8 | 14.7 | 13.2 |
Advisory dealing funds | 1.1 | 1.1 | 1.0 |
Execution-only funds | 6.9 | 6.8 | 6.0 |
Total administered funds | 8.0 | 7.9 | 7.0 |
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Total FuMA | 22.8 | 22.6 | 20.2 |
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MSCI WMA Private Investor Balanced Index | 1,568 | 1,574 | 1,423 |
The change in FuMA since 30 June 2020 is explained in more detail in the table below:
| Discretionary managed | Advisory managed | Advisory dealing | Execution-only |
Total |
| £bn | £bn | £bn | £bn | £bn |
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Funds at 1 July 2020 | 13.4 | 1.3 | 1.1 | 6.8 | 22.6 |
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New clients | 0.1 | - | - | 0.1 | 0.2 |
Transfers | - | - | - | - | - |
Net outflows from existing clients | (0.1) | - | - | (0.1) | (0.2) |
Lost clients | (0.1) | (0.1) | - | (0.1) | (0.3) |
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Net outflows of funds | (0.1) | (0.1) | - | (0.1) | (0.3) |
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Market movement | 0.3 | - | - | 0.2 | 0.5 |
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Funds at 30 September 2020 | 13.6 | 1.2 | 1.1 | 6.9 | 22.8 |
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Revenue
The table below sets out the unaudited revenues of the Group for the quarter ended 30 September 2020 along with the prior year comparatives on a like-for-like basis.
Quarter ended 30 September 2020 |
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| Investment Management Services | Financial Planning | Charles Stanley Direct | Revenue |
| £m | £m | £m | £m |
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Fees | 27.0 | 2.2 | 1.6 | 30.8 |
Commission
| 8.1 | - | 0.5 | 8.6 |
Interest turn | 0.4 | - | 0.1 | 0.5 |
Total | 35.5 | 2.2 | 2.2 | 39.9 |
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Quarter ended 30 September 2019 |
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| Investment Management Services | Financial Planning | Charles Stanley Direct | Revenue |
| £m | £m | £m | £m |
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Fees | 27.7 | 2.2 | 1.5 | 31.4 |
Commission | 8.8 | - | 0.3 | 9.1 |
Interest turn | 1.8 | - | 0.5 | 2.3 |
Total | 38.3 | 2.2 | 2.3 | 42.8 |
Six months ended 30 September 2020 | ||||
| Investment Management Services | Financial Planning | Charles Stanley Direct | Revenue |
| £m | £m | £m | £m |
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Fees | 53.7 | 4.5 | 2.9 | 61.1 |
Commission
| 17.7 | - | 1.2 | 18.9 |
Interest turn | 1.6 | - | 0.4 | 2.0 |
Total | 73.0 | 4.5 | 4.5 | 82.0 |
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Six months ended 30 September 2019 | ||||
| Investment Management Services | Financial Planning | Charles Stanley Direct | Revenue |
| £m | £m | £m | £m |
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Fees | 54.8 | 3.9 | 2.9 | 61.6 |
Commission | 18.4 | - | 0.7 | 19.1 |
Interest turn | 3.7 | - | 1.0 | 4.7 |
Total | 76.9 | 3.9 | 4.6 | 85.4 |