SHRE.L Regulatory News (SHRE)

AIM: SHRE

Share plc

("Share" or "the Group")

Trading Update and Market Share Results for Q3

Share (AIM: SHRE), which operates The Share Centre Limited, a leading independent UK stockbroker, is pleased to announce an update on trading for the third quarter of 2013 including the results of its Q3 performance against its peers* as measured in an independent survey by Compeer Limited, which benchmarks the business performance of wealth managers, private banks and stockbrokers in the UK.

Continuing revenues in the third quarter of 2013 were 14% higher than the comparable period last year. Overall Group revenues which included revenues from the Group's scaled back Sharefunds operations showed 9% growth year-on-year. These strong figures were aided by good momentum in the stockmarket as overall share prices recovered from their fall in June and investor interest and market activity was stimulated by AIM shares being allowed into ISAs and expectation of the Royal Mail IPO. Trading at the start of Q4 has begun well and the Group expects investor sentiment to remain buoyed with improving market values and high profile IPOs, including the Royal Mail and Merlin Entertainments, stimulating trading activity.

The Group's market share of peer group* revenues reached a record high of 7.33% in Q3, up from 6.88% in the same quarter last year and an increase on the prior quarter of 2013. Share's Q3 revenue performance of 9% overall year-on-year growth is significantly stronger than the peer group*, as measured by Compeer Limited, which saw collective revenues increase by 2% year-on-year.

The Group's track record of growth in market share over the last four years is shown below (it should be noted the market share through to Q4 2010 benefitted from the Group's Interest Rate Floor Policy):

* 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.

Looking at the relative components of overall revenue:

- dealing commission for the Group increased by 30% relative to Q3 2012. This compares to an increase across its peers collectively of 23%.

- account fee income for the Group increased by 1% relative to Q3 2012, even after the scaling back of Sharefunds revenues. Excluding Sharefunds, account fee income increased by 11%. This compares to a collective decrease across the peers of 14%.

- interest and other income for the Group decreased by 11% relative to Q3 2012. This compared to a decrease across the peers of 47% and reflects the further weakening in interest rates as a result of the Government's Funding for Lending and Help to Buy schemes.

The Group continues to maintain a more balanced model than its peers. This is principally reflected in the difference in the contribution from dealing commission which accounted for 41% of the Group's revenues in the third quarter of 2013 compared to 67% of total peer revenues.

Share's third quarter performance is particularly pleasing as it is the first quarter following the Group's tariff changes introduced in July. Those changes appear to have been well received and position us very competitively in the market.

Retail Distribution Review

In the interests of personal investors The Share Centre is leading the way in taking action to follow the spirit as well as the letter of the FSA's Retail Distribution Review (RDR). We have a vigorous and comprehensive fund supermarket and are already well through the process of actively converting customers fund holdings into 'clean' share classes with lower annual management charges. This is significantly in the best interests of customers and so we are actively doing this ahead of the timescales set by the RDR. We will not simply sit back and wait for customers to instruct a transfer into clean classes, relying on inertia to continue to collect trail commission. Where available, only clean share classes of funds are now available for purchase on our platform.

Further, we will not be charging a platform fee. We charge an account administration fee - as we always have. This is a low flat fee regardless of the investments held within the account. This makes our offering neutral to customers' investment choices and means customers are not disadvantaged through higher charges when investing in funds - a route many personal investors choose to get diversity into their portfolios.

We believe this investment neutral positioning, and turning away from value related charges for providing funds custody, sets us apart from many of our peers and, when combined with our award winning customer service, will make our offering very attractive for retail investors.

Commenting on Share's Q3 performance and the market share data, Gavin Oldham, Chief Executive of Share plc, said,

"Share's 14% growth in continuing revenues in Q3 is very encouraging and I am delighted to see the Group's market share climb to a record high of 7.33% for the same period.

 Our business model is underpinned by a strong desire to serve the personal investor and our stance on funds demonstrates this - actively converting to clean share classes and not charging a platform fee. That stance on charges also makes our offering highly competitive and should position us well to grow the business further.

The fourth quarter has started well, buoyed by improving market values and the surge in IPO activity such as the Royal Mail and Merlin Entertainments. These large scale new issues demonstrate the appetite amongst personal investors to engage with the market.

We are confident in our ability to continue to focus on the investment needs of our customers and the resultant ability of the Group to deliver long term growth in both revenues and margins."

For further information please contact:

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 Services 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.

Sharemark is an auction-based dealing facility designed primarily for emerging or smaller companies to which a higher investment risk tends to be attached than to larger or more established companies. The securities traded on Sharemark may not be listed. The Sharemark trading facility is operated by The Share Centre Limited. The Share Centre is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority under reference 146768. Sharemark constitutes a Multilateral Trading Facility and is not a recognised investment exchange, clearing house or regulated market within the meaning of the Markets in Financial Instruments Directive.

Notes for Editors:

1 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 Sharemark (www.sharemark.com), the auction-based trading platform designed especially for growing companies.

2 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.

3 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.

4 Services available to corporate clients include share plan administration, fund administration and 'white-label' dealing platforms.

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