26 Oct 2011 07:00
Share plc
PRESS RELEASE
Benchmarked Revenue Data - Q3 2011
Quarterly Peer Group Market Share of 5.77% (Q3 2010 6.09% excluding the interest rate floor policy)
In line with the Group's commitment to publish its quarterly benchmarked revenue data, the Group announces that its market share was 5.77% of peer group revenues in the third quarter of 2011. 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 nine other companies*.
The track record of growth in market share over the last four years is shown below, excluding the effects of the interest rate floor policy (IRFP) from which the Group benefited between Q4 2008 and Q4 2010:
Q3 07 | Q4 07 | Q1 08 | Q2 08 | Q3 08 | Q4 08 | Q1 09 | Q2 09 | Q3 09 | |
Market Share | 5.21% | 5.24% | 5.53% | 5.31% | 5.18% | 5.11% | 4.80% | 4.63% | 4.80% |
Q4 09 | Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 | Q2 11 | Q3 11 | ||
Market Share | 4.83% | 4.92% | 5.23% | 6.09% | 6.29% | 6.10% | 6.13% | 5.77% |
The market share reduced in the third quarter as a result of two factors. First, the very high dealing volumes seen in the market in August, and second, a fall in market values. The Group's business model is more evenly weighted between commission, fees and interest income than is the case for the Peer Group. One impact of this is that in times of high dealing volumes the Group does not get the same proportional benefit as the rest of the Peer Group. In respect of market values, the FTSE All-Share Index fell almost 15% during the quarter which had an impact on the Group's fee income and any value related charges. Whilst the Group outperformed the peers in respect of fee income the decline in this area exaggerated the shift in revenue mix in the quarter in favour of dealing commission.
Overall revenues in the third quarter were in line with those delivered in Q2 2011 at £3.5 million, an increase of 3% on the same quarter in 2010, excluding the benefit of the IRFP. (Q3 2010 revenues £4.1m including the IRFP, £3.4m excluding the IRFP)
Looking at the relative components of overall revenue:
- dealing commission for the Group increased by 6.6% relative to Q2 2011. This compares to an average increase across the peer group of 8.4%.
- fee income for the Group decreased by 6.6% relative to Q2 2011. This compares to an average decrease across the peer group of 11.7%.
- interest and other income for the Group increased by 2.2% relative to Q2 2011. This compares to an average increase across the peer group of 16.1%.
As noted above, the Group continues to maintain a more balanced model than its peers with a split between dealing commission, fee income and interest and other income in the third quarter of 2011 of 40%, 46% and 14% respectively, as compared to a respective split of 62%, 16%, 22% amongst the collective peer group.
The fourth quarter benchmarked revenue data figures will be released with the Group's preliminary results for 2011, expected to be released to the market on Tuesday 6th March 2012.
* The peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, 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
Richard Stone, Finance Director 01296 439 270
Stephanie Reynolds, PR Manager 01296 439 256
Barbara Pierssene, Company Secretary
Peel Hunt LLP, Nominated Adviser and Broker 020 7418 8900
Guy Wiehahn