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Latest Share Chat

Benchmarked Revenue Data

19 Oct 2010 07:00

RNS Number : 5854U
Share PLC
19 October 2010
 

Share plc

 

PRESS RELEASE

 

Benchmarked Revenue Data - Q3 2010

 

Quarterly Peer Group Market Share of 7.23% (Q3 2009: 5.83%)

 

In line with the Group's commitment to publish its quarterly benchmarked revenue data, the Group is pleased to announce that its market share increased to 7.23% of peer group revenues in the third quarter of 2010. This data is compiled by Compeer Limited, the independent company which collates data across the stockbroking and wealth management communities, and compares the revenue data of Share plc against a peer group of nine other companies*.

 

The Group's market share of the peer group's revenues increased to 7.23% in Q3 2010 (5.83% in Q3 2009). The track record of growth in market share over the last four years is shown below:

 

Q3 06

Q4 06

Q1 07

Q2 07

Q3 07

Q4 07

Q1 08

Q2 08

Q3 08

Market Share

5.08%

4.96%

5.13%

5.05%

5.21%

5.24%

5.53%

5.31%

5.18%

Q4 08

Q1 09

Q2 09

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Market Share

5.33%

5.67%

5.64%

5.83%

5.91%

5.97%

6.27%

7.23%

 

 

The performance in the third quarter of 2010 demonstrates that the Group has performed well in all three of its revenue streams. Although trading volumes have been lower across the market than in 2009, The Share Centre saw good trading volumes and has not experienced a drop of the same magnitude as the collective peer group. Buoyant market levels have helped both dealing commission values and fees for the Group. The FTSE 100 increased by c.13% in the last quarter, adding 6% in September alone, closing at 5,549 on 30 September as against 4,917 on 30 June 2010. Finally, in respect of interest income, the Group has continued to benefit from its interest rate floor policy during this quarter but has also made use of some more attractive rates available on longer term deposits in order to increase interest income.

 

The Group's interest rate floor policy runs to 1 November 2010. By that date the Group will have received payments totalling £4.96m from the policy, which originally cost £94,500. This has helped the Group's relative revenue performance since November 2008 when interest rates first fell below 3.5%.

 

In terms of the Group's market share of the peer group's revenues, this would have been 6.09% in Q3 2010 had the Group not had the benefit of the interest rate floor policy. Over the last year the market share excluding the impact of the interest rate floor policy is shown in the table below. It is worth noting that 6.09% market share has only been exceeded in two quarters (Q2 2010 and Q3 2010) even when the impact of the interest rate floor policy is included (as shown in the table above).

 

Q3 09

Q4 09

Q1 10

Q2 10

Q3 10

Market Share

4.80%

4.83%

4.92%

5.23%

6.09%

 

Looking across the relative components of overall revenue;

 

- dealing commission for the Group decreased by 7% relative to the third quarter of 2009, as compared to an average decrease across the peer group of 21%,

- fee income for the Group increased by 24% relative to the third quarter of 2009, as compared to an average increase across the peer group of 29%

- interest and other income for the Group increased by 21% relative to the third quarter of 2009, as compared to an average increase of 4% across the peer group.

 

The above data indicates that the Group is outperforming its peer group in terms of securing a greater share of retail investor activity, with the relative performance in dealing commission of particular note. This is in the context that the collective peer group is typically more dependent on dealing commission - it represents 67% of their revenues as against 35% of Share plc's revenues.

 

The Group continues to maintain a more balanced model than its peers with a split between dealing commission, fee income and interest and other income in the third quarter of 2010 of 35%, 37% and 27% respectively, as compared to a respective split of 67%, 15%, 18% amongst the collective peer group.

 

The fourth quarter benchmarked revenue data figures, which will be released with the Group's preliminary results for 2010, will only have one month's benefit of the interest rate floor policy. They will therefore likely show a headline drop in performance but should be set in the context of the data presented above showing the values excluding the impact of the interest rate floor policy.

 

The directors remain confident of the outlook for the rest of the year and look forward to presenting the preliminary results for 2010, expected to be released to the market on 1 March 2011.

 

* 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.

 

For further information please contact:

Share plc 01296 414 141

Gavin Oldham, Chief Executive 01296 439 100 (Mob. 07767 337 696)

Richard Stone, Finance Director 01296 439 270 (Mob. 07919 220 599)

Emma Cross, PR Manager 01296 439 426 (Mob. 07887 568 335)

Barbara Pierssene, Company Secretary

 

Peel Hunt Ltd, Nominated Adviser and Broker 020 7418 8900

Guy Wiehahn

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
MSCFFEFMAFSSESS

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