29 Apr 2010 07:00
Share plc
PRESS RELEASE
Benchmarked Revenue Data - Q1 2010
Quarterly Peer Group Market Share of 5.97%
Share plc is pleased to announce that its market share increased to 5.97% of peer group revenues in the first quarter of 2010. This data is compiled by Compeer Limited, the independent company which collates data across the stockbroking and wealth management communities, and compares the revenue data of Share plc against a peer group of ten other companies*.
Share plc's revenues predominantly come from The Share Centre Limited, its retail stockbroking business. The market share of the peer group's revenues increased to 5.97% in Q1 2010 (5.67% in Q1 2009). The track record of growth in market share over the last four years is shown below:
|
|
|
|
|
|
|
|
The performance in the first quarter of 2010 relative to the Group's peers reflects both strong trading during this period and the continuing benefit derived by the Group from its interest rate floor policy. In addition rising stock market values have helped increase the level of fees where those fees are related to the underlying value of our customers' holdings.
Looking across the relative components of the Group's overall revenue;
- dealing commission increased by 27% relative to the first quarter of 2009, as compared to an average increase across the peer group of 10%,
- fee income increase by 29% relative to the first quarter of 2009, as compared to an average increase across the peer group of 36%
- interest and other income fell by 23% relative to the first quarter of 2009, as compared to an average fall of 33% across the peer group.
Continued strong demand from investors remains prevalent across the retail stockbroking sector. However the above data shows that The Share Centre is outperforming its peers in securing a greater share in that activity growth, with a rate of increase in dealing commission of almost three times that of the collective peer group.
The Group continues to maintain a far more balanced model than its peers with a split between dealing commission, fee income and interest and other income of 38%, 37% and 25% respectively, as compared to the split of 71%, 15%, 14% amongst the collective peer group.
Commenting on the results, Chief Executive, Gavin Oldham said: "All areas of the business are showing greater involvement of personal investors, particularly through the internet where 9 out of every 10 new Share Accounts are opened online through www.share.com. In addition, the number of investors using our frequent dealer Trader Option (featuring a flat £7.50 dealing charge) has risen by 47% year on year. This is a very encouraging start to the year."
Whilst the impact of the general election on stock markets and investor sentiment is unclear, particularly if the outcome is indecisive, the directors remain confident of the outlook for the rest of the year.
* The peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, E\* Trade Securities, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, NatWest Stockbrokers (RBS), Saga Personal Finance, Selftrade and TD Waterhouse Investor Services Europe.
For further information please contact:
Share plc 01296 414 141
Gavin Oldham, Chief Executive 01296 439 100 (Mob. 07767 337 696)
Richard Stone, Finance Director 01296 439 270 (Mob. 07919 220 599)
Barbara Pierssene, Company Secretary
KBC Peel Hunt Ltd, Nominated Adviser and Broker 020 7418 8900
Guy Wiehahn or Oliver Stratton