SHRE.L Regulatory News (SHRE)

AIM: SHRE

Share plc

("Share" or "the Company")

Trading update and market share results for Q1 2014

Year-on-year increase in market share to 7.30% (Q1 2013: 7.19%)

Share (AIM: SHRE), which operates The Share Centre Limited, one of the leading independent UK stockbrokers, is pleased to announce an update on trading for the first quarter of 2014 including the results of its Q1 performance against its peers* as measured independently by Compeer Limited, which collates data across the wealth management community and compares business performance.

Share's revenues in Q1 to 31 March 2014 were 6.3% higher than the same period in 2013. This represented a stronger performance than that of its peer group which experienced a collective 4.5% increase in revenues. As a result, Share's market share of peer group revenues in the period increased to 7.30% (Q1 2013: 7.19%), maintaining the record performance achieved in the second half of 2013.

Share's revenue comprises:

- dealing commission, which increased by 19% relative to Q1 2013. This compares to an increase across the peers collectively of 4% and the Company's share of dealing commission revenue in Q1 2014 rose to 5.6% (2013: 4.9%);

- fee income, which increased by 2% relative to Q1 2013. This compares to a collective decrease across the peers of 2%;

- interest income, which decreased by 18% relative to Q1 2013. This reflects the lower rates available in the market as some deposits on significantly more favourable rates matured and compares to a decrease across the peers of 5%.

The Company's dealing commission and fees performance is particularly notable for two reasons. First, it is a proxy for the levels of engagement and activity within our customer base, and second because it demonstrates how the Group has successfully positioned itself and its charges following the Retail Distribution Review.

Assets held by Share on behalf of its customers increased by 18.3% to £2.4bn since the end of Q1 2013 as compared to a movement of 5.2% in the FTSE All Share index over the same period.

Share's track record of growth in market share over the last three years is shown below, with the first quarter of each year highlighted for comparison:

Retail Distribution Review ("RDR")

The Share Centre has taken a very positive approach to the second phase of the RDR (RDR2) which came into effect in April 2014. RDR2 stops all trail commission payments from fund providers to distributors of those funds such as The Share Centre. This applies to all new business immediately and all historic business from April 2016. However, The Share Centre is not taking advantage of that later deadline and is instead actively converting customers holdings in funds into 'clean' share classes which do not pay trail commission and which therefore typically charge a lower annual management charge.

In terms of pricing, The Share Centre has adopted a very simple low cost fixed fee tariff. An administration fee is charged for holding an account but that charge does not then vary according to the investments the customer chooses or the value of the account. This ensures customers are not penalised by higher fees as their investments build in value.

The first quarter of 2014 has seen a number of our competitors announce their charging structures with many opting for value-related fees in an effort to replace revenues previously earned on that basis through trail commission. We believe that as customers see the impact of those tariffs on their accounts they will find The Share Centre tariff attractive, competitively low cost and good value.

ISAs

The Share Centre has always charged a fee for administering ISA accounts and historically this may have appeared uncompetitive. Our new tariff and the pricing announcements from peers have changed that market positioning, and it is therefore noteworthy that the 2013-14 tax year saw net transfers in of ISA accounts from other providers for the first time.

Outlook

The second quarter has started briskly with dealing activity and commission continuing to show good growth over 2013.

The end of the tax year signals a peak in activity for ISAs as investors seek to maximise their use of tax efficient accounts. The Share Centre saw record numbers of ISA accounts being opened and amounts being subscribed during the 2013-14 tax year. Total subscriptions into ISAs in the tax year were up 48% on 2013.

There are a number of changes happening over the coming months which we believe will further help support our growth:

- the changes announced in the Budget, in particular the extension of the ISA limit from July 2014 and changes to the rules for stocks and shares ISAs, will help further to promote the ISA as the savings vehicle of choice. We believe this signals a broader shift in Government policy, with support for pension saving through the tax system likely to come under further pressure. The ISA is thus becoming the preferred route for investors, regardless of their means, to save and invest tax efficiently.

- stamp duty is being removed from trading in AIM stocks(**) on 28th April. This should further support AIM trading.

The Q2 benchmarked revenue data figures will be released with the Group's half year results for 2014, expected to be released to the market on Tuesday 5th August 2014.

Richard Stone, Chief Executive of Share plc, commented,

"Trading in the first quarter of the new financial year has begun well, with revenues up by 6.3% against the same period last year. In addition, Share has again delivered good growth in its market share year-on-year and our increased share of dealing commission is particularly encouraging.

We have also been very pleased with the ISA account opening and activity levels we have seen during the last couple of months. We believe investors are beginning to see the benefits of clear, simple and low cost fixed fee charging structures.

With continued low interest rates, the changes announced in the Budget and competitors charging structures now being laid out, we believe the Group is well positioned for the future. We look forward to the rest of the year with confidence."

* 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.

** This applies to AIM quoted shares which are not dual listed on a Recognised Investment Exchange and which have completed the necessary administrative processes of Euroclear.

For further information please contact:

Notes for Editors:

Share plc is the parent holding company of The Share Centre Limited, which trades as The Share Centre, and Sharefunds Limited. Share's shares are traded on AIM and also on Asset Match.

The Share Centre, which started trading in 1991, 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, CTF accounts and SIPPs, all with the benefit of investment advice, and dealing in a wide range of investments. As well as providing online execution-only dealing services to private investors, The Share Centre also provides services to corporate clients including share plan administration and 'white-label' dealing platforms.

'Clean share classes' are units within funds which attract a lower annual management charge and pay no commission payments (often referred to as 'trail commission') to distributors.

For more details on Share plc and The Share Centre, please visit www.shareplc.com and 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.