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28 Jan 2010 07:00
Rensburg Sheppards plc
Interim Management Statement
28 January 2010
Rensburg Sheppards plc, the investment management group, today publishes its Interim Management Statement for the period from 1 October 2009 to 27 January 2010, which includes information on revenues and funds under management for the three months and nine months ended 31 December 2009.
Highlights - three months ended 31 December 2009:
Steve Elliott, Chief Executive of Rensburg Sheppards, commented:
"Rensburg Sheppards continues to be soundly financed and cash generative. Whilst markets in the first few weeks of 2010 have remained uncertain, we believe that the strong base from which Rensburg Sheppards operates leaves the group well placed for the future".
During the third quarter of the group's financial year there was a further improvement in Rensburg Sheppards' operating environment, with equity markets continuing their recovery.
This improvement in the operating environment has been reflected in the revenue figures below, which show encouraging increases in the key revenue streams of fees and commissions over the last quarter and, for the investment management segment, for the financial year to date. As previously highlighted, interest from client deposits has continued to be depressed as the UK bank base rate has remained throughout the quarter at the historically low level of 0.5%.
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Three months ended
31 Dec 2009
£’000
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Three months ended
31 Dec 2008
£’000
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Change %
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Nine months ended
31 Dec
2009
£’000
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Nine months ended
31 Dec
2008
£’000
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Change
%
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|
|
|
|
|
|
|
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Investment management:
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- Fees
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14,542
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11,983
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+21.4
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41,248
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38,579
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+6.9
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- Commissions
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6,617
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5,207
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+27.1
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18,176
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16,255
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+11.8
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- Interest from client deposits
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1,342
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4,752
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-71.8
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5,144
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12,341
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-58.3
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- Trail commission
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1,337
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1,396
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-4.2
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3,584
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4,240
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-15.5
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- Other income
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1,734
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1,384
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+25.3
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4,864
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5,226
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-6.9
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Sub-total
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25,572
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24,722
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+3.4
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73,016
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76,641
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-4.7
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Fund management:
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- Fees
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2,088
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2,010
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+3.9
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5,615
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6,991
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-19.7
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- Profit on sale of units of unit trusts
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324
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280
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+15.7
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956
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904
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+5.8
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- Other income
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1
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19
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-94.7
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17
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35
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-51.4
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Sub-total
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2,413
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2,309
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+4.5
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6,588
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7,930
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-16.9
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Total net revenue*
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27,985
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27,031
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+3.5
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79,604
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84,571
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-5.9
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* Net of fees and commissions payable to introducers. Net revenue does not include income or profit relating to the disposal of Mayflower or the Corporate Bond Trust, which was disposed of during the six months ended 30 September 2009.
The investment management segment's funds under management below reflect the impact of the disposal on 30 December 2009 of Mayflower Management Company Limited ('Mayflower'), a wholly owned group company. Mayflower's sole activity was to manage a charity property fund which, at disposal, had discretionary assets under management of £299 million. This disposal was completed for a cash consideration of £1.9 million plus the negligible net assets of Mayflower. The ensuing profit on disposal of £1.9 million is anticipated to be free of corporation tax.
The discretionary funds managed by Mayflower formed part of the investment management segment and were relatively low-yielding for the business. Despite the outflow of these funds, the group's total funds under management during the three months ended 31 December 2009 increased by 1.5%, compared with increases of 2.5% and 4.8% 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:
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31 Dec 2009
£bn
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30 Sept 2009
£bn
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Change since 30 Sept 2009
%
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31 Mar 2009
£bn
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Investment management:
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11.03
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10.85
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+1.7
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8.93
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- Discretionary
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8.08
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7.93
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+1.9
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6.46
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- Non-discretionary
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2.95
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2.92
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+1.0
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2.47
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Fund management:
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1.28
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1.28
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+0.0
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1.08
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- Retail units
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0.92
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0.89
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+3.4
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0.77
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- Segregated mandate
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0.36
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0.39
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-7.7
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0.31
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Total funds under management
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12.31
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12.13
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+1.5
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10.01
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FTSE APCIMS Balanced
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2,724.3
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2,658.0
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+2.5
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2,230.5
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FTSE All-Share
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2,760.8
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2,634.8
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+4.8
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1,984.2
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As announced previously on 18 November 2009, we welcomed three new executive directors to the board with their appointments being effective from 1 December 2009. In addition, the team of eight investment managers who joined our Edinburgh office in mid-November 2009 have settled in well and we are pleased with their progress to date in signing up clients.
Rensburg Sheppards continues to be soundly financed and cash generative. Cash and cash equivalents less subordinated debt totalled £44.0 million as at 31 December 2009. Whilst markets in the first few weeks of 2010 have remained uncertain, we believe that the strong base from which Rensburg Sheppards operates leaves the group well placed for the future.
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 / Michael Sandler Tel: 020 7796 4133
Hudson Sandler
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