29 Oct 2009 07:00
Share plc
PRESS RELEASE
Benchmarked Revenue Data - Q3 2009
Quarterly Peer Group Market Share of 5.83%
In line with the Group's commitment to publish its quarterly benchmarked revenue data, the Group is pleased to announce that its market share increased to 5.83% of peer group revenues in the third quarter of 2009. 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*.
The Group's market share of the peer group's revenues increased to 5.83% in Q3 2009 (5.18% in Q3 2008).
| Q1 06 | Q2 06 | Q3 06 | Q4 06 | Q1 07 | Q2 07 | Q3 07 | Q4 07 | |
| Market Share | 4.54% | 4.69% | 5.08% | 4.96% | 5.13% | 5.05% | 5.21% | 5.24% |
| Q1 08 | Q2 08 | Q3 08 | Q4 08 | Q1 09 | Q2 09 | Q3 09 | ||
| Market Share | 5.53% | 5.31% | 5.18% | 5.33% | 5.67% | 5.64% | 5.83% |
The growth in market share, particularly notable since the third quarter of 2008, has been driven by two elements.
First, the Group has benefitted relative to its peers from the underpinning of its interest income by means of the interest rate floor policy as disclosed in the Group's annual report. This has enabled the Group to maintain a level of interest income not available to its peers once interest rates fell below 3.5% in the fourth quarter of 2008.
Second, the Group has benefitted from a significant increase in retail investment activity undertaken by personal investors. Energised into seeking income from sources other than cash deposits and with stock market values at levels where yields have been attractive, many have sought to gain income and capital growth from the stock market. This has led to increased transaction volumes across the industry. However, our share of the peer group's dealing commission revenue has grown steadily since the third quarter of 2008 indicating that The Share Centre has made more progress than some other players.
For our peer group the exceptional level of dealing activity has substituted lost interest income. With our interest rate floor policy underpinning the Group's interest income the high transaction volumes have resulted in significant revenue growth year on year for Share plc. Thus as compared to the third quarter of 2008, the peer group as a whole saw an increase of 12.5% in total revenues while Share plc has seen an increase of 27.6%.
For the three quarters to the end of September, Share plc had generated revenues which were 20% higher than for the same period in 2008 and seen operating profits more than double. The level of activity in the market, which quietened slightly in July, has remained otherwise very strong and the directors are 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
KBC Peel Hunt Ltd, Corporate Broking 020 7418 8837
Matthew Tyler.