7 Dec 2012 07:00
AIM: SHRE
SHARE PLC
("the Group")
Update on Sharefunds
Share plc, parent company of The Share Centre, a leading independent retail stockbroker, provides the following update on its investment management and fund administration subsidiary, Sharefunds.
As reported in Share plc's interim results statement, issued in August, after completing a strategic review of the Sharefunds business, the Board took the decision to concentrate the business exclusively on its existing in-house funds and to reduce its third party-related activities. This move was in line with the Group's strategy to focus predominantly on its core retail stockbroking business and influenced by the Board's view of the changing fund administration market place. Having completed a financial review of the ongoing fund accounting business, the Group is now outsourcing both its depository and fund accounting arrangements to BNP Paribas Securities Services as of 1 April 2013.
The effect of outsourcing fund accounting services means that the Group no longer has a requirement for its bespoke fund accounting system and will therefore write off approximately £0.7m of capitalised development cost in the current financial year to 31 December 2012. There is no impact on the cash position of the Group. The absence of depreciation relating to this IT system in future periods, combined with savings from reduced staffing costs and other overheads will result in a continuing relative improvement to the income statement of approximately £0.3m per annum.
As previously reported in the interim results statement, the Group expects to increase the level of assets held in its in-house range of funds and to benefit from the value based annual management charges.
Full year results are anticipated to be announced in late February when the Board looks forward to providing a further update on the Group's progress.
For further information please contact:
Share plc | ||
Gavin Oldham, Chief Executive | 01296 439 100 | 07767 337696 |
Richard Stone, Chief Operating Officer & Finance Director | 01296 439 270 | 07919 220599 |
Stephanie Reynolds, PR Manager | 01296 439 256 | |
Peel Hunt LLP (Nominated advisor) | 020 7418 8900 | |
Guy Wiehahn | ||
Biddicks Financial Public Relations | 020 3178 6378 | |
Zoe Biddick / Katie Tzouliadis |
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.
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 Asset Match. |
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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. |
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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. |
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4.
| Services available to corporate clients include share plan administration, fund administration and 'white-label' dealing platforms. |
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5. | For more details contact 0800 800 008, or visit www.shareplc.com or www.share.com. |