24 Oct 2012 07:00
Share plc - Press Release
Strong Market Share Achieved - Benchmarked Revenue Data - Q3 2012
Quarterly Peer Group Market Share increased to 6.88% (Q3 2011: 5.77%)
Share plc (AIM: SHRE), whose principal business is The Share Centre Limited, one of the leading independent UK stockbrokers, is pleased to announce that its market share was 6.88% of peer group revenues in the third quarter of 2012, a new record high. In the context of challenging market conditions when absolute revenues have been falling this represents a strong performance relative to the Group's peers. The 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 nine other peers*.
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 08 | Q4 08 | Q1 09 | Q2 09 | Q3 09 | Q4 09 | Q1 10 | Q2 10 | Q3 10 | |
Market Share | 5.18% | 5.11% | 4.80% | 4.63% | 4.80% | 4.83% | 4.92% | 5.23% | 6.09% |
Q4 10 | Q1 11 | Q2 11 | Q3 11 | Q4 11 | Q1 12 | Q2 12 | Q3 12 | ||
Market Share | 6.29% | 6.10% | 6.13% | 5.77% | 6.49% | 6.46% | 6.69% | 6.88% |
The third quarter remained challenging, with personal investors continuing to hold back from investment activity due to ongoing economic concerns and in the face of a stockmarket lacking any real sense of direction or momentum.
Overall, Share plc's revenues in the third quarter of 2012 were 4% lower than in the third quarter of 2011. Whilst disappointing in absolute terms, this is a significantly stronger performance than the peer group which saw collective revenues fall by 20% year on year. The Group continues to maintain a more balanced model than its peers. This is principally reflected in the difference in the contribution from dealing commission which accounted for 35% of the Group's revenues in the third quarter of 2012 compared to 56% of total peer revenues. Looking at the relative components of overall revenue:
- dealing commission for the Group decreased by 16% relative to Q3 2011. This compares to a decrease across its peers collectively of 28%.
- account fee income for the Group increased by 1% relative to Q3 2011. This compares to a collective decrease across the peers of 24%.
- interest and other income for the Group increased by 15% relative to Q3 2011. This compares to an increase across the peers of 10%.
Investment Trends Research
The Group is also very pleased to hear that in the annual research conducted by Investment Trends covering execution only stockbrokers in the UK market, and based on responses from over 22,000 personal investors, The Share Centre Limited was rated top for customer satisfaction.
Retail Distribution Review
The Share Centre is well placed to take advantage of opportunities to grow its business as a result of the FSA's Retail Distribution Review (RDR) and is taking action to prepare for the changes. Although it has a vigorous and comprehensive fund supermarket, trail commission represents only 4% of overall revenues. In addition, all account customers are already familiar and comfortable with paying modest administration charges, not least reflecting the high level of customer service we offer.
Commenting on the market share data, Investment Trends research and future prospects, Gavin Oldham, Chief Executive of Share plc, said
"Share plc has delivered good growth in its market share year-on-year, up 19% on the comparable quarter in 2011. Market conditions are clearly challenging at present with subdued transaction volumes. However, the Investment Trends research shows that we are continuing to provide our customers with outstanding levels of customer service. Our business model is underpinned by a higher level of recurring income and as a result, when dealing volumes are subdued, we are able to outperform our peers. We are confident in our ability to continue to focus on the investment needs of our customers and the resultant ability of the Group to deliver long term growth in both revenues and margins."
* 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 | ||
Gavin Oldham, Chief Executive | 01296 439 100 | 07767 337696 |
Richard Stone, Chief Operating Officer & Finance Director | 01296 439 270 | 07919 220599 |
Stephanie Reynolds, PR Manager | 01296 439 256 | |
Barbara Pierssene, Company Secretary | ||
Peel Hunt LLP, Nominated Adviser and Broker | 020 7418 8900 | |
Guy Wiehahn | ||
Biddicks Financial Public Relations | 020 3178 6378 | |
Zoe Biddick |
Risk Warning:
This document is not intended to constitute an offer or agreement to buy or sell investments and does not constitute a personal recommendation. The investments and services referred to in this document may not be suitable for every investor and if in doubt independent financial advice should be sought. No liability is accepted whatsoever for any loss howsoever arising from any information in this document subject to the rules of the Financial Services Authority or the Financial Services and Markets Act 2000. Share prices, values and income can go down as well as up and investors may get back less than their initial investment.
Sharemark is an auction-based dealing facility designed primarily for emerging or smaller companies to which a higher investment risk tends to be attached than to larger or more established companies. The securities traded on Sharemark may not be listed. The Sharemark trading facility is operated by The Share Centre Limited. The Share Centre is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority under reference 146768. Sharemark constitutes a Multilateral Trading Facility and is not a recognised investment exchange, clearing house or regulated market within the meaning of the Markets in Financial Instruments Directive.
Notes for Editors:
1 Share plc is the parent holding company of The Share Centre Limited and Sharefunds Limited and its shares are traded on AIM and also on Sharemark (www.sharemark.com), the auction-based trading platform designed especially for growing companies.
2 The Share Centre started trading in 1991 and provides a range of account-based services to enable investors to share in the wealth of the stock market.
3 Retail services include Share Accounts, ISAs, CTF accounts and SIPPs, all with the benefit of investment advice, and dealing in a wide range of investments.
4 Services available to corporate clients include share plan administration, fund administration and 'white-label' dealing platforms.
5 For more details contact 0800 800 008, or visit www.shareplc.com or www.share.com.