CBP.L Regulatory News (CBP)

30 November 2020

Curtis Banks Group plc

("Curtis Banks", the "Company" or the "Group")

Trading and Operations Update

Curtis Banks, one of the UK's leading SIPP providers, is pleased to provide a trading and operations update.

The Company can confirm that since its interim results the Group is performing well and, in spite of considerable headwinds, remains in line with market expectations.

Aligned with Curtis Banks' stated growth strategy to build greater scale and additional, complementary revenue streams the Company announced the acquisitions of Talbot and Muir, a high-quality provider of SIPP and SSAS schemes, and Dunstan Thomas, a leading FinTech provider in July 2020. The integration of these two businesses is progressing in accordance with plans.

These two acquisitions enable a step change in the quality of our revenue stream, materially increasing the amount generated from recurring fee income. The Company is delighted to outline a further step being taken this year. Following a review of the business model the Company has taken the decision to achieve a better balance between fee income and interest income, which it believes is more transparent and provides greater certainty to clients. This will involve increases to the annual SIPP administration fees paid on the mid and full SIPPs with effect from 1 February 2021. These fees remain competitive against the market, reflecting the value of Curtis Banks' enhanced proposition. In addition, we are implementing steps to improve the interest received by clients as rates increase.

The decisive actions taken by management during 2020, including the acquisitions of Talbot and Muir and Dunstan Thomas, are driving additional recurring SIPP revenues and building further diversity of revenues. The benefit of these actions will be reflected in our financial year to 31 December 2021. Together with these fee changes, the actions will materially reduce the Group's overall sensitivity to interest rates. This will provide a robust and sustainable foundation for future growth.

The Company intends to release a post-close trading update in January 2021, ahead of announcing its full year results in March 2021.

Will Self, CEO of Curtis Banks, said:

"Curtis Banks is the largest independent SIPP provider in the UK and has always taken a leadership position, evolving our proposition and driving change in the sector.

"We have continued to invest in the business committing £5m to investment in technology, over a 5 year period. This has already delivered a new online portal, improving data visibility and the customer journey. Investment in systems, processes and our people is vital to ensuring our business continues to meet clients' needs and expectations into the future, as well as for us to continue to innovate."

"We are transitioning the Group to a more sustainable, resilient business model through diversifying our revenue streams and reducing our exposure to interest rates. The first step taken in 2020 was acquiring Talbot and Muir, a high-quality business with strong recurring revenues. Secondly, we diversified the Group's revenue generation with the acquisition of Dunstan Thomas. Thirdly, as part of a review, we have addressed the Group's volatility in revenue caused by interest income and today announced changes to our SIPP annual administration fee to provide greater transparency for clients. These changes, not only reduce the proportion of interest income of our total revenues but also ensure our business continues to meet the needs and expectations of our clients, and their advisers, in the future. It strongly positions the Group for future growth as a market leading SIPP provider in an evolving regulatory environment."

"Curtis Banks continues to perform strongly despite a challenging market environment and the integration of Talbot and Muir and Dunstan Thomas continues at pace. We remain well positioned for the year ahead."

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Notes to Editors

Curtis Banks is one of the United Kingdom's leading administrators of self-invested pension products, principally SIPPs and SSASs and has successfully developed, through a combination of organic growth and acquisitions, into one of the largest UK providers of these products. At 30 June 2020 the Group administered circa £28.6bn of pension assets on behalf of over 76,000 active clients.