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28 Jan 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 October 2008 to 27 January 2009, which includes information on revenues and funds under management for the three months and nine months ended 31 December 2008.
The third quarter of the group's financial year saw a further marked deterioration in global financial markets, centred on the well publicised difficulties experienced across the banking sector and the adverse consequences of the ensuing credit squeeze for the wider economy.
In recognising the very sharp contrast in operating environments over the periods, it was reassuring to see net revenue* for the third quarter of the current financial year decline by just 11.1% from that achieved by the group in the corresponding quarter of 2007. During the current difficult times, the importance to clients of high quality, independent investment management advice is at a peak: we remain firmly focussed on providing this, which will reinforce the historically strong client relationships central to the group's success.
The table below analyses net revenue between the two business segments of the group:
|
|
Three months ended
31 Dec 2008
£’000
|
Three months ended
31 Dec 2007
£’000
|
Change %
|
Nine months ended
31 Dec
2008
£’000
|
Nine months ended
31 Dec
2007
£’000
|
Change
%
|
|
|
|
|
|
|
|
|
|
Investment management
|
|
|
|
|
|
|
|
- Fees
|
11,983
|
14,451
|
-17.1
|
38,579
|
43,612
|
-11.5
|
|
- Commissions
|
5,207
|
5,594
|
-6.9
|
16,255
|
17,930
|
-9.3
|
|
- Interest turn
|
4,752
|
3,284
|
44.7
|
12,341
|
9,146
|
34.9
|
|
- Trail commission
|
1,396
|
1,468
|
-4.9
|
4,240
|
4,279
|
-0.9
|
|
- Other income
|
1,384
|
1,826
|
-24.2
|
5,226
|
5,730
|
-8.8
|
|
Sub-total
|
24,722
|
26,623
|
-7.1
|
76,641
|
80,697
|
-5.0
|
|
|
|
|
|
|
|
|
|
Fund management
|
|
|
|
|
|
|
|
- Fees
|
2,010
|
3,094
|
-35.0
|
6,991
|
9,323
|
-25.0
|
|
- Profit on sale of units of unit trusts
|
280
|
658
|
-57.4
|
904
|
1,752
|
-48.4
|
|
- Other income
|
19
|
21
|
-9.5
|
35
|
69
|
-49.3
|
|
Sub-total
|
2,309
|
3,773
|
-38.8
|
7,930
|
11,144
|
-28.8
|
|
|
|
|
|
|
|
|
|
Total net revenue
|
27,031
|
30,396
|
-11.1
|
84,571
|
91,841
|
-7.9
|
|
|
|
|
|
|
|
|
* Revenue net of fees and commissions payable to introducers
During the three months ended 31 December 2008, the group's total funds under management declined by 5.4%, compared with falls of 4.7% and 11.0% in the FTSE APCIMS Private Investors Balanced and FTSE All-Share indices respectively.
An analysis of the group's funds under management by business segment is given below:
|
|
31 Dec 2008
£bn
|
30 Sept 2008
£bn
|
Change since 30 Sept %
|
31 Mar
2008
£bn
|
|
|
|
|
|
|
|
Investment management:
|
9.59
|
10.20
|
-6.0
|
11.48
|
|
- Discretionary
|
6.84
|
7.25
|
-5.7
|
8.04
|
|
- Non-discretionary
|
2.75
|
2.95
|
-6.8
|
3.44
|
|
|
|
|
|
|
|
Fund management:
|
1.24
|
1.25
|
-0.8
|
1.47
|
|
- Retail units
|
0.89
|
0.87
|
2.3
|
1.08
|
|
- Segregated mandate
|
0.35
|
0.38
|
-7.9
|
0.39
|
|
|
|
|
|
|
|
Total funds under management
|
10.83
|
11.45
|
-5.4
|
12.95
|
|
-----------------------------------
|
----------------
|
--------------
|
------------
|
-----------
|
|
FTSE APCIMS Balanced
|
2,416.48
|
2,535.09
|
-4.7
|
2,801.75
|
|
FTSE All-Share
|
2,209.29
|
2,483.67
|
-11.0
|
2,927.05
|
The group continues to be soundly financed and cash generative, with cash plus cash equivalents less subordinated debt totalling £27.3 million as at 31 December 2008. This leaves the group well placed to take advantage of the potential opportunities that may arise from the current environment.
The first few weeks of 2009 have seen continuing volatility and further declines in the leading financial market indices. Whilst fully acknowledging the prevailing uncertainty, the board remains satisfied with the group's longer-term prospects.
For further information, please contact:
Steve Elliott, Chief Executive Tel: 020 7597 1234
Jonathan Wragg, Finance Director Tel: 0114 228 6705
Rensburg Sheppards plc
Nick Lyon / James White Tel: 020 7796 4133
Hudson Sandler
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