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Q1 Benchmarked Revenue Data

21 Apr 2011 12:06

RNS Number : 3625F
Share PLC
21 April 2011
 

Share plc

 

PRESS RELEASE

 

Benchmarked Revenue Data - Q1 2011

 

Quarterly Peer Group Market Share of 6.10%

 

In line with the Group's commitment to publish its quarterly benchmarked revenue data, the Group is pleased to announce that its market share of peer group revenues in the first quarter of 2011 was 6.10%. This is an increase from 5.97% in the first quarter of 2010, and when the prior year impact of the income from the Group's interest rate floor policy is removed the increase is even greater as the Q1 2010 figure would have been 4.92%.

 

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 two years is shown below. These figures exclude the impact of the interest rate floor policy for the period Q1 2009 to Q4 2010 during which the Group received payments from that policy.

 

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Q4 10

Q1 11

Benchmarked Revenue Market share (%)

4.80

4.63

4.80

4.83

4.92

5.23

6.09

6.29

6.10

 

The performance in the first quarter of 2011 relative to the Group's peers underlines that trading has been relatively strong during this period.

 

Looking across the relative components of overall year-on-year revenue changes;

 

- dealing commission for the Group increased by 33% relative to the first quarter of 2010, as compared to an average increase across the peer group of 3%,

- fee income for the Group increased by 22% relative to the first quarter of 2010, as compared to an average decrease across the peer group of 5%

- interest and other income for the Group fell by 50% relative to the first quarter of 2010 due to the ending in Q4 2010 of the interest rate floor policy. If the interest rate floor policy is excluded from the headline revenue figure, the Group saw underlying interest income rise by 84%. The peer group saw a collective rise in this revenue stream of 27%.

 

Overall Q1 2011 revenues were therefore 8% higher than in Q1 2010, and 32% higher when excluding the interest rate floor policy from the prior year comparative. This compares to a collective increase of 5% across the peer group.

 

Chief Executive, Gavin Oldham, commented: "The strong year-on-year rise in dealing commission revenues compared with our peer group shows the significant increase in the level of engagement of our customers with their investments. This growth is primarily driven through our website, www.share.com, and demonstrates the huge transformation of personal investor activity since we started trading 20 years ago in April 1991."

 

In light of the first quarter performance, the directors remain confident of the outlook for the rest of the year, although any significant changes in the economic environment, investor sentiment or market values clearly can impact the Group's performance.

 

* 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 (Mob. 07767 337 696)

Richard Stone, Finance Director 01296 439 270 (Mob. 07919 220 599)

Barbara Pierssene, Company Secretary

 

Peel Hunt LLP, Nominated Adviser and Broker 020 7418 8900

Guy Wiehahn or Emma Riza

 

 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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