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21 Jan 2016 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.charles-stanley.co.uk/investor-relations
TRADING UPDATE
Thursday 21st January 2016
QUARTER ENDED 31 DECEMBER 2015
Charles Stanley Group PLC ("the Group") today issues a trading update covering the period from 1 April 2015 to 31 December 2015, and includes trading results for the three months ended 31 December 2015.
At the period end, total client funds were £20.8 billion, a decrease of 2.3% over the nine months since 31 March 2015. Over the same period the FTSE 100 decreased by 7.8% and the WMA Balanced Portfolio Index decreased by 4.2%.
Revenues from continuing operations for the quarter ended 31 December 2015 decreased 8.4% to £31.8 million (QE 31 December 2014: £34.7 million). Total revenues, which include those from held for sale operations (Charles Stanley Securities, which was sold in July 2015, and Charles Stanley Financial Solutions, for which a contract has been exchanged subject to FCA approval), decreased by 10.7% to £32.4 million (QE 31 December 2014: £36.3 million).
Revenues for the nine months to 31 December 2015 from continuing operations are down 0.5% to £102.6 million on the same period last year (YTD 31 December 2014: £103.1 million). Total revenues are down 1.8% to £107.2 million on the same period last year (YTD 31 December 2014: £109.2 million).
Paul Abberley, Chief Executive Officer, said:
"In a period of general decline in market values and lower trading activity in comparison to the same period in 2014/15, trading conditions in the third quarter and into January 2016 have been challenging. Progress continues to be made with the implementation of the Group's turnaround strategy and we remain confident in our long term prospects."
For further information please contact:
Charles Stanley Group PLC |
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Joanne Vowles |
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Public Relations Manager |
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Phone 020 7149 6273 |
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Redleaf Communications Rebecca Sanders-Hewett Phone: 020 7382 4730 CScapitalmarkets@redleafpr.com |
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FUNDS UNDER MANAGEMENT AND ADMINISTRATION
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Dec 15 |
Dec 14 | Change since Dec 14 |
Mar 15 | Change since Mar 15 |
| £ bn | £ bn | % | £ bn | % |
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Discretionary funds | 9.4 | 8.9 | 5.6% | 9.3 | 1.1% |
Advisory managed funds | 2.6 | 2.9 | (10.3%) | 3.0 | (13.3%) |
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Total managed funds | 12.0 | 11.8 | 1.7% | 12.3 | (2.4%) |
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Advisory dealing funds | 1.8 | 2.2 | (18.2%) | 2.1 | (14.3%) |
Execution only funds | 7.0 | 6.5 | 7.7% | 6.9 | 1.4% |
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Total administered funds | 8.8 | 8.7 | 1.1% | 9.0 | (2.2%) |
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Total funds under management and administration | 20.8 | 20.5 | 1.3% | 21.3 | (2.3%) |
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FTSE 100 index | 6,242 | 6,566 | (4.9%) | 6,773 | (7.8%) |
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WMA balanced | 3,531 | 3,537 | (0.0%) | 3,684 | (4.2%) |
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The change since March 2015 is explained in more detail in the tables below:
| Discretionary managed | Advisory managed |
Total |
Change |
| £ bn | £ bn | £ bn | % |
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Funds at 1 April 2015 | 9.3 | 3.0 | 12.3 |
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Net inflow/(outflow) from existing clients | 0.7 | (0.2) | 0.5 |
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Lost clients | (0.3) | (0.1) | (0.4) |
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Net inflow of funds | 0.4 | (0.3) | 0.1 | 0.8% |
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Market movement | (0.3) | (0.1) | (0.4) | (3.3%) |
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Funds at 31 December 2015 | 9.4 | 2.6 | 12.0 |
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Total change over nine months | 1.1% | (13.3%) | (2.4%) |
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REVENUE
The tables below set out the revenues of the Group along with the prior year comparative, for both the quarter ended 31 December 2015 and the nine month period ended 31 December 2015.
Quarter ended 31 December 2015
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Investment Management |
Asset Management |
Financial Planning | Charles Stanley Direct |
Continuing Operations |
Held for Sale |
Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Fees |
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Investment Management | 14,613 | 571 | 376 | - |
15,560 | - | 15,560 |
Administration | 3,449 | 725 | 1,057 | 996 | 6,227 | 489 | 6,716 |
Corporate Finance | - | - | - | - |
- | 73 | 73 |
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Total fees | 18,062 | 1,296 | 1,433 | 996 | 21,787 | 562 | 22,349 |
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Commission | 9,582 | 126 | 95 | 207 | 10,010 | - | 10,010 |
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Total | 27,644 | 1,422 | 1,528 | 1,203 | 31,797 | 562 | 32,359 |
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Quarter ended 31 December 20141
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Investment Management |
Asset Management |
Financial Planning | Charles Stanley Direct |
Continuing Operations |
Held for Sale |
Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Fees |
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Investment Management | 13,664 | 530 | 237 | - |
14,431 | - | 14,431 |
Administration | 5,862 | 723 | 945 | 925 | 8,455 | 864 | 9,319 |
Corporate Finance | - | - | - | - |
- | 600 | 600 |
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Total fees | 19,526 | 1,253 | 1,182 | 925 | 22,886 | 1,464 | 24,350 |
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Commission | 11,346 | 118 | 94 | 211 | 11,769 | 170 | 11,939 |
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Total | 30,872 | 1,371 | 1,276 | 1,136 | 34,655 | 1,634 | 36,289 |
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1The revenue figures for quarter ended 31 December 2014 have been restated in line with the division classification used in December 2015 for ease of comparison.
Year ended 31 December 2015
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Investment Management |
Asset Management |
Financial Planning | Charles Stanley Direct |
Continuing Operations |
Held for Sale |
Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Fees |
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Investment Management | 43,820 | 1,741 | 1,066 | - |
46,627 | - | 46,627 |
Administration | 12,998 | 2,113 | 2,978 | 3,124 | 21,213 | 1,879 | 23,092 |
Corporate Finance | - | - | - | - |
- | 2,569 | 2,569 |
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Total fees | 56,818 | 3,854 | 4,044 | 3,124 | 67,840 | 4,448 | 72,288 |
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Commission | 33,441 | 382 | 274 | 657 | 34,754 | 177 | 34,931 |
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Total | 90,259 | 4,236 | 4,318 | 3,781 | 102,594 | 4,625 | 107,219 |
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Year ended 31 December 20141
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Investment Management |
Asset Management |
Financial Planning | Charles Stanley Direct |
Continuing Operations |
Held for Sale |
Total |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Fees |
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Investment Management | 41,832 | 997 | 788 | - |
43,617 | - | 43,617 |
Administration | 15,286 | 2,658 | 3,044 | 3,059 | 24,047 | 2,455 | 26,502 |
Corporate Finance | - | - | - | - |
- | 3,162 | 3,162 |
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Total fees | 57,118 | 3,655 | 3,832 | 3,059 | 67,664 | 5,617 | 73,281 |
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Commission | 34,087 | 398 | 285 | 611 | 35,381 | 525 | 35,906 |
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Total | 91,205 | 4,053 | 4,117 | 3,670 | 103,045 | 6,142 | 109,187 |
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1The revenue figures for period ended 31 December 2014 have been restated in line with the division classification used in December 2015 for ease of comparison.
About Charles Stanley Group PLC
Charles Stanley was established in 1792 and is one of the oldest firms on the London Stock Exchange.
Charles Stanley Group today provides bespoke portfolio management mainly to private clients, delivered by over 450 professionals located in 28 offices throughout the UK. To enhance the quality of our service to clients we operate in-house administration and custody for investment portfolios, SIPPs and ISAs and have developed Charles Stanley Direct, an award winning direct to customer execution-only dealing platform for equities and funds.
Charles Stanley operates a number of complementary financial services businesses which are available to our core investment management clients. These businesses offer financial planning services, fund management and employee benefit consultancy.
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