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30 Jul 2009 07:00
Rensburg Sheppards plc
Interim Management Statement
Rensburg Sheppards plc, the investment led wealth management group, today publishes its Interim Management Statement for the period from 1 April 2009 to 29 July 2009, which includes information on revenues and funds under management for the three months ended 30 June 2009.
During the three months to 30 June 2009, the group's total funds under management increased by 8.4%. This compares with rises of 3.9% and 9.5% in the FTSE APCIMS Private Investors Balanced and FTSE All-Share indices respectively and is a robust performance which reflects net organic growth in each of the group's business segments, accompanied by a gradual lifting of the investment mood. As confidence has revived, equities have rallied and government bonds fallen, in a reversal of the trends earlier in the year.
Although the sustainability of this recovery is uncertain at present, it is encouraging that consensus forecasts for economic contraction in 2009 have flattened off recently and 2010 is expected to see a modest bounce back.
Whilst the rise in financial markets since the end of the group's last financial year is welcome, conditions remain challenging with market levels significantly below those experienced prior to the second half of 2008. Given this, we are satisfied with being able to report the funds under management and revenue figures set out below.
An analysis of the group's funds under management by business segment is given below:
|
|
30 June 2009
£bn
|
31 March 2009
£bn
|
Change since 31 March
%
|
|
|
|
|
|
|
Investment management:
|
9.64
|
8.93
|
+8.0
|
|
- Discretionary
|
7.04
|
6.46
|
+9.0
|
|
- Non-discretionary
|
2.60
|
2.47
|
+5.3
|
|
|
|
|
|
|
Fund management:
|
1.21
|
1.08
|
+12.0
|
|
- Retail units
|
0.88
|
0.77
|
+14.3
|
|
- Segregated mandate
|
0.33
|
0.31
|
+6.5
|
|
|
|
|
|
|
Total funds under management
|
10.85
|
10.01
|
+8.4
|
|
--------------------------------------
|
------------------
|
------------------
|
-----------------
|
|
FTSE APCIMS Balanced
|
2,317.6
|
2,230.5
|
+3.9
|
|
FTSE All-Share
|
2,172.1
|
1,984.2
|
+9.5
|
The following table analyses net revenue between the two business segments of the group:
|
|
Three months ended
30 June 2009
£’000
|
Three months ended
30 June 2008
£’000
|
Change %
|
Year ended
31 March 2009
£’000
|
|
|
|
|
|
|
|
Investment management
|
|
|
|
|
|
- Fees
|
12,476
|
13,934
|
-10.5
|
49,641
|
|
- Commissions
|
5,406
|
5,946
|
-9.1
|
22,438
|
|
- Interest from client deposits
|
2,181
|
3,827
|
-43.0
|
16,011
|
|
- Trail commission
|
1,002
|
1,549
|
-35.3
|
5,184
|
|
- Other income
|
1,563
|
2,135
|
-26.8
|
6,768
|
|
Sub-total
|
22,628
|
27,391
|
-17.4
|
100,042
|
|
|
|
|
|
|
|
Fund management
|
|
|
|
|
|
- Fees
|
1,812
|
2,587
|
-30.0
|
9,042
|
|
- Profit on sale of units of unit trusts
|
364
|
330
|
+10.3
|
1,180
|
|
- Other income
|
12
|
3
|
+300.0
|
71
|
|
Sub-total
|
2,188
|
2,920
|
-25.1
|
10,293
|
|
|
|
|
|
|
|
Total net revenue *
|
24,816
|
30,311
|
-18.1
|
110,335
|
* Revenue stated net of fees and commissions payable to introducers
On 20 July 2009 we announced the completion of the merger of the Rensburg Corporate Bond Trust with a newly established Gartmore Corporate Bond Fund, which is to be managed by Gartmore Fund Managers Limited. At 30 June 2009 the funds under management in respect of the Corporate Bond Trust, which are included in the table above within 'Fund management - retail units', stood at £122.7 million.
In accordance with the agreed repayment schedule, on 6 May 2009 the group repaid a further £5.625 million of its subordinated debt, reducing this debt to £33.75 million.
The group continues to be soundly financed and cash generative, with cash and cash equivalents net of subordinated debt totalling £36.0 million as at 30 June 2009. This continues to leave the group in a position to be able to benefit from opportunities that may arise.
For further information, please contact:
Jonathan Wragg, Finance Director Tel: 0114 228 6705
Rensburg Sheppards plc
Michael Sandler / James White Tel: 020 7796 4133
Hudson Sandler
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