18 Apr 2013 07:00
Share plc
Market share results for Q1 2013 and trading update
Year-on-year increase in market share to 7.19% (Q1 2012: 6.46%)
Share plc (AIM: SHRE), whose principal business is The Share Centre Limited, one of the leading independent UK stockbrokers, announces that its market share of peer group revenues in the first quarter of 2013 was 7.19%. This represented an increase on the same period last year and broadly maintained the record performance achieved in Q4 2012 - Q4 typically being our strongest quarter. The data is compiled by Compeer Limited, an independent company which collates data across the wealth management community, 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:
Q1 09 | Q2 09 | Q3 09 | Q4 09 | Q1 10 | Q2 10 | Q3 10 | Q4 10 | Q1 11 | |
Market Share | 4.80% | 4.63% | 4.80% | 4.83% | 4.92% | 5.23% | 6.09% | 6.29% | 6.10% |
Q2 11 | Q3 11 | Q4 11 | Q1 12 | Q2 12 | Q3 12 | Q4 12 | Q1 13 | ||
Market Share | 6.13% | 5.77% | 6.49% | 6.46% | 6.69% | 6.88% | 7.23% | 7.19% |
The first quarter of the year saw an improvement in both market values and investor sentiment. Following the resolution of the US 'fiscal cliff' issues (at least in the short term) at the end of 2012 the new year started briskly. The resurfacing of issues in the Eurozone have tempered activity a little, but we continue to see trading levels ahead of the same period in 2012.
Overall, Share plc's revenues in the first quarter of 2013 were 2% higher than in the first quarter of 2012 and 8.1% higher than the fourth quarter of 2012. As reflected in the market share data above, this performance is stronger than that seen collectively by our peers who experienced a decrease in collective revenues of 9.4% when compared to Q1 2012. Historically we have performed less well as dealing activity has increased and it is particularly good to see our share of dealing commission increasing significantly. In Q1 2013 our share of the peer group's dealing commission revenue was 4.9% (Q1 2012: 4.3%). This has been noticeable in our ISA accounts and in particular our new online ISA with its flat administration fee of £12.50 per quarter (+VAT).
Looking at the relative components of overall revenue:
- dealing commission for the Group increased by 11% relative to Q1 2012. This compares to a decrease across the peers collectively of 3%.
- fee income for the Group decreased by 5% relative to Q1 2012. Excluding the effect of the reduced business from WAY Fund Managers Limited our fee income actually increased by 3.1%. This compares to a collective decrease across the peers of 11%.
- interest income for the Group decreased by 4% relative to Q1 2012 reflecting the lower deposit rates in the market. This compares to a decrease across the peers of 41%.
The second quarter benchmarked revenue data figures will be released with the Group's half year results for 2013, expected to be released to the market on Tuesday 6th August 2013.
Continued delivery of strategy
In Q1 2013, we have continued to deliver against the three key elements of our strategy.
Putting customers first - we have launched our refreshed website with improved navigation and functionality and more content.
Focus on our core brand - The Share Centre - www.share.com - we have completed the transition of the WAY Fund Managers business. We have also transferred fund accounting and depositary activities for the remaining funds where we act as Authorised Corporate Director to BNP Paribas.
Partnerships - we have been involved in detailed discussions with a number of potential new partners through whom we can deliver our services on a white-label basis. Two of these are expected to start their service in the coming quarter.
Financial Services Compensation Scheme (FSCS)
We received an interim levy invoice for £66,000 earlier in April for the period 2012-2013. This took the total FSCS charge for that period to £342,000 and impacts profitability directly in the first quarter. We continue to believe this is an unfair imposition of costs on prudently managed businesses and we continue to argue vociferously for a change to the FSCS's funding structure.
Commenting on the market share data Gavin Oldham, Chief Executive of Share plc, said:
"Share plc has delivered good growth in its market share year-on-year and the increased share of dealing commission is particularly encouraging. Whilst the market continues to be buffeted by events - for example the Cyprus crisis and more recent events in the US - overall sentiment continues to be positive and we continue to deliver against our strategy and through that delivery are growing revenues relative to last year."
* 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 337 696 |
Richard Stone, Chief Operating Officer and Finance Director | 01296 439 270 | 07919 220 599 |
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 | |
Katie Tzouliadis |