SHRE.L Regulatory News (SHRE)

AIM: SHRE

Share plc

("Share" or "the Group")

Trading Update

Share plc (AIM: SHRE.LN), parent company of The Share Centre (a leading independent retail stockbroker) and Sharefunds (the Group's investment management and fund administration subsidiary), is providing an update on trading for the year ending 31 December 2014.

In line with the wider market, the Group has not seen the usual seasonal increase in trading volumes in Q4, after a subdued Q3 as detailed in the Q3 trading update issued on 28 October 2014. As a result, while dealing commission and fees grew in the first half of the year, overall revenues for 2014 are now expected to be flat year-on-year. Current year profit before tax will accordingly reflect this, and will be below current market expectations, especially given the Group's operational gearing and recent investment in reshaping the senior management team. The new hires, a new IT Director and a new Director of Customer Experience as well as an additional Non-executive Director, all of whom have backgrounds in market leading retail organisations, significantly enhance the team and are part of the Board's wider long-term growth plans for the business.

The Board continues to execute against its strategy to establish partnerships and today announces it is in exclusive discussions on a major contract which if concluded would materially benefit revenues and profits over the next three years. A further announcement regarding the outcome of these discussions will be made in due course.

Share's balance sheet remains strong. In particular, the Group's investments in the London Stock Exchange plc and Euroclear plc have increased in value by a net £1.8m after the costs of participating in the London Stock Exchange plc rights issue are taken into account.

Commenting Richard Stone, Chief Executive, said:

"As we approach the year end, the second half has been disappointing as investor activity has remained subdued. However, the Group remains in a strong position going forward, supported by our very strong balance sheet and by the opportunities we are opening up. 

Looking ahead, whilst political uncertainty may increase ahead of the General Election, regulatory changes to pensions, continued low interest rates and a return to real wage growth should help support saving and investment by personal investors, an increasing number of whom, we believe, will look to make those investments on a self-select basis.

I look forward with particular enthusiasm to the New Year and working with the newly reshaped executive team. It is of great significance that the individuals we have recruited come from large retailing backgrounds where customer service is critical. We place the customer at the heart of all that we do and to be able to draw on expertise from recognised leaders in other sectors will help ensure that we continue to innovate and maintain market-leading standards in customer service. In doing so we will succeed in building our business."

Contacts

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.

Notes for Editors:

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 Asset Match. 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. These include Share Accounts, ISAs, CTF accounts and SIPPs, all with the benefit of investment advice, and dealing in a wide range of investments. Services available to corporate clients include share plan administration and 'white-label' dealing platforms.

For more details contact 0800 800 008, or visit www.shareplc.com or www.share.com.