CAY.L Regulatory News (CAY)

27 July 2017

Charles Stanley Group PLC

Trading update for the three months ended 30 June 2017

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading update for the first quarter ended 30 June 2017. The Group is showing steady growth in line with management expectations.

Total Funds under Management and Administration ("FuMA") at 30 June 2017 were £24.1 billion representing an increase of 0.4% against £24.0 billion at 31 March 2017. This represents a reasonable rate of growth when set against a backdrop of marginally adverse market conditions. Over the same period the FTSE UK Private Investor Balanced Index fell by 0.3%.

Significantly, this growth came under the higher margin discretionary fund category, which increased 3.5% (£0.4bn) in part due to transfers from lower margin advisory services. Advisory managed and advisory dealing fund categories fell by 4.2% (£0.1bn) and 5.6% (£0.1bn) respectively during the quarter. Execution-only fell by 1.2% (£0.1bn) overall although Charles Stanley Direct continued its strong progress, up 4.6% to £2.4bn.

Total Group revenues on a year-to-date basis are up 13.3% from £33.8 million to £38.3 million. Excluding EBS Management PLC, the pensions administration business which was sold by the Group on 31 May 2017, revenues from continuing activities for the quarter ended 30 June 2017 increased by 13.9% to £37.7 million (quarter to 30 June 2016: £33.1 million).

Paul Abberley, Chief Executive Officer, commented:

"Trading conditions remain stable against the backdrop of a relatively flat market over Q1. Our strategy remains on track to deliver long term growth in revenues, margins and profits, which in turn will support our progressive dividend policy and thus generate long-term shareholder value."

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Notes to editors:

Charles Stanley traces its origins back directly to 1792 and is one of the oldest firms on the London Stock Exchange. Charles Stanley today provides holistic wealth management services to private clients, charities and smaller institutions. These are delivered by over 400 professionals located in 24 offices throughout the UK, both direct to clients and to intermediaries. Our services include investment portfolio management and financial planning, supported by in-house administration 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.

FUNDS UNDER MANAGEMENT AND ADMINISTRATION

The change in managed funds since 31 March 2017 is explained in more detail in the table below:

REVENUE

The table below sets out the revenues of the Group for the quarter ended 30 June 2017 along with the prior year comparatives on a like for like basis.