24 Apr 2017 07:00
24 April 2017
AIM: SHRE
Share plc
("Share" or "the Company" or "the Group")
Trading Update
Share plc, which operates The Share Centre Limited, a leading independent UK stockbroker, is pleased to announce an update on trading for the first quarter of the financial year ending 31 December 2017, including data on the Group's performance relative to its peers*, as measured by Compeer Limited, the independent business performance benchmarking company.
Highlights
· Quarterly revenues in excess of £4m for the first time in the Group's history
· Revenue market share excluding interest reached a record high of 11.0% (Q1 2016: 9.5%)*
· £4bn of assets on the platform, up 6% since 1 January 2017
· Positive outlook into the second quarter and beyond
Trading in the first quarter has been strong, supported by buoyant dealing volumes and higher customer numbers following the addition of books of customer accounts in 2016. Revenues have increased to a record level for any quarter, up 20% to £4.1m (Q1: 2016: £3.4m) and assets under administration increased by 6% to a high of £4bn at the end of the period. This reflected strong asset flows as well as the rise in stock market values. The Group's performance is also ahead of its peer group, with its market share reaching record highs: excluding interest, the Group's market share rose to 11%* (Q4 2016: 9.79% and Q1 2016: 9.47%) and including interest, its market share recorded a high of 8.42%* (Q4 2016 7.48% and Q1 2016: 7.50%). A more detailed review of Share's revenue mix and performance is provided below.
Share continues to make very good progress against its growth strategy. The Company has now launched its new funds offering, as well as the new Lifetime ISA product. In addition, the transfer of the Invesco Perpetual accounts was completed on 17 April and the disposal of the Group's non-core subsidiary, Sharefunds Limited, which acts an Authorised Corporate Director, completed on 7 April.
The outlook for 2017 continues to remain very positive. Trading continued strongly through the end of the tax year and the full benefits of the major new partnerships and account acquisitions agreed with Computershare and Invesco Perpetual are still to come.
Review of revenue mix and performance
Dealing commission
Dealing commission, which accounted for c.54% of Group revenues, increased by 41% relative to Q1 2016, significantly outperforming the growth for the peer group of 8%*.
Fee income
Fee income, which accounted for c.42% of Group revenues, increased by 7% relative to Q1 2016, compared to a fall of 7% for the peer group*.
Interest income
Despite the increase in client money balances, interest income, which now accounts for less than 4% of Group revenues, reduced by 37% relative to Q1 2016. This reflected lower interest rates and the continuing reluctance of banks to accept client money deposits. Interest income for the peer group increased by 1%* (for reasons set out in previous statements) and continued to exceed fee income. On 13 April 2017, the Financial Conduct Authority ('FCA') issued The Share Centre with a Direction allowing up to 60% of the firm's client money balances to be deposited for up to 95 days rather than the 30 day limit specified in the current Client Money rules. This will help address the issue of failing appetite within the banking sector for on-call client money deposits.
Richard Stone, Chief Executive of Share plc, commented:
"Share has attained quarterly revenues in excess of £4m for the first time in the Group's history and we continued to outperform our peers on key metrics, with the Company's revenue market share, excluding interest, reaching a record high of 11%. This pleasing performance reflects the progress we are making in both account acquisition and major new partnerships, as well as the high customer service levels we offer. We continue to view prospects for 2017 very positively and the Group remains well positioned for year-on-year revenue and earnings growth."
* Market share data has been independently compiled and measured by Compeer Limited and the benchmark peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing, HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing
For further information please contact: Share plc |
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Richard Stone, Chief Executive | 01296 439 270 / 07919 220 599 |
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Mike Birkett, Finance Director Joe Dumont, Head of Corporate Communications | 01296 439 479 01296 439 426 |
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Cenkos Securities plc (Nominated Adviser and broker) |
020 7397 8900 |
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Ivonne Cantu / Mark Connelly |
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KTZ Communications (Financial Public Relations) Katie Tzouliadis / Emma Pearson |
020 3178 6378 |
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About Share plc:
Share plc is the parent holding company of The Share Centre Limited and its shares are traded on AIM. 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. Retail services include share accounts, ISAs, Junior ISAs and SIPPs, all with the benefit of investment advice, and dealing in a wide range of investments. Services available to corporate clients include Enterprise Investment Scheme administration and 'white-label' dealing platforms.
For more details contact 0800 800 008, or visit www.shareplc.com or www.share.com
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 Conduct 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. The Share Centre is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority under reference 146768.