Charles Stanley Group PLC Trading Statement (7937E)

TIDMCAY

RNS Number : 7937E

Charles Stanley Group PLC

21 July 2016

21 July 2016

Charles Stanley Group PLC

Q1 2017 Trading Update

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading update for the three months ended 30 June 2016. The Company remains on track and results are in line with management expectations.

Total Funds under Management and Administration ("FuMA") at 30 June 2016 were GBP20.9 billion representing an increase of 2.0% compared to GBP20.5 billion at 31 March 2016. Discretionary and execution only funds increased respectively by 4.3% and 2.9% whilst advisory managed and advisory dealing declined by 3.8% and 5.9%. Over the same period, the FTSE 100 Index rose by 4.9% and the WMA Balanced Portfolio Index increased by 4.6%.

Revenues in the Core Business for the quarter ended 30 June 2016 decreased on a like-for-like basis compared to the same quarter last year by 6.9% to GBP33.8 million (30 June 15: GBP36.3 million). This decline was mainly a result of a reduction in trail commission, commission on bargains and interest turn. Overall revenues fell by 12.5% to GBP33.8 million following the disposals last year of Charles Stanley Securities and Charles Stanley Financial Solutions, sold in order to focus on developing the core wealth management business.

Paul Abberley, Chief Executive Officer, commented:

"Overall FuMA increased by 2.0% from the start of the financial year and we have increased discretionary funds 4.3% to GBP9.8 billion. This has been achieved against a backdrop of market uncertainty leading up to the EU referendum vote. Stewardship of our clients' assets is particularly important during uncertain times and we will continue to monitor carefully both the political and economic environment. At the same time, we will pursue our strategy of focusing on clients, delivering a holistic wealth management service and improving our operating margins across all our divisions."

For further information, please contact:

 
  Charles Stanley            Canaccord         Peel            Redleaf Communications 
   Joanne Vowles              Genuity           Hunt            Rebecca Sanders-Hewett 
   Head of Communications     Roger Lambert     Guy Wiehahn     Charlie Geller 
   Via Redleaf                020 7523          020 7418        020 7382 4730 
                              4619              8893            [e-mail] 
 

Notes to editors:

Charles Stanley was established in 1792 and is one of the oldest firms on the London Stock Exchange. Charles Stanley today provides holistic wealth management services to private clients, charities and smaller institutions. These are delivered by over 450 professionals located in 25 offices throughout the UK, both direct to clients and to intermediaries. Our services include investment portfolio management and financial planning, supported by in-house administration and custody for investment portfolios, SIPPs and ISAs to enhance the quality of service provided. In addition, Charles Stanley Direct provides an award winning direct to customer Execution-only dealing platform for equities and funds.

FUNDS UNDER MANAGEMENT AND ADMINISTRATION

 
                                              Change 
                           Jun 16    Mar 16    since 
                            GBPbn     GBPbn   Mar 16 
 
 Discretionary funds          9.8       9.4     4.3% 
 Advisory managed 
  funds                       2.5       2.6   (3.8%) 
-----------------------  --------  --------  ------- 
 Total managed funds         12.3      12.0     2.5% 
-----------------------  --------  --------  ------- 
 Advisory dealing 
  funds                       1.6       1.7   (5.9%) 
 Execution-only funds         7.0       6.8     2.9% 
-----------------------  --------  --------  ------- 
 Total administered 
  funds                       8.6       8.5     1.2% 
 
 Total FuMA                  20.9      20.5     2.0% 
-----------------------  --------  --------  ------- 
 
 FTSE 100 Index             6,478     6,175     4.9% 
-----------------------  --------  --------  ------- 
 
 WMA Balanced Index         3,721     3,556     4.6% 
-----------------------  --------  --------  ------- 
 

The change in managed funds since March 2016 is explained in more detail in the table below:

 
                                    Discretionary                 Advisory 
                                          managed                  managed                    Total   Change 
                                            GBPbn                    GBPbn                    GBPbn        % 
 
 Funds at 1 April 2016                        9.4                      2.6                     12.0 
 
 
 New clients                                  0.1                        -                      0.1 
 Transfers                                      -                    (0.1)                    (0.1) 
 Net inflow/(outflow) 
  from existing clients                         -                    (0.1)                    (0.1) 
 Lost clients                               (0.1)                        -                    (0.1) 
 
 
 
 Net inflow/(outflow) 
  of funds                                      -                    (0.2)                    (0.2)   (1.7%) 
 
 
 
 Market movement                              0.4                      0.1                      0.5     4.2% 
 
 
 
 Funds at 30 June 2016                        9.8                      2.5                     12.3     2.5% 
 
 

REVENUE

The tables below set out the revenues of the Group as at 30 June 2016 along with the prior year comparatives on a like for like basis.

 
 Quarter ended 
  30 June 2016 
                    Investment         Asset   Financial    Charles        Core      Held     Total 
                    Management    Management    Planning    Stanley    Business       For 
                      Services                               Direct                  Sale 
                       GBP'000       GBP'000     GBP'000    GBP'000     GBP'000   GBP'000   GBP'000 
 Fees 
 Market based           15,299         1,355         125        239      17,018         -    17,018 
 Administration          2,416             9       1,593        367       4,385         -     4,385 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total fees             17,715         1,364       1,718        606      21,403         -    21,403 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Commission             11,295           156           6        283      11,740         -    11,740 
 Interest 
  turn                     514             7           4        120         645         -       645 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total                  29,524         1,527       1,728      1,009      33,788         -    33,788 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 
 
 Quarter ended 
  30 June 2015(1) 
                    Investment         Asset   Financial    Charles        Core      Held     Total 
                    Management    Management    Planning    Stanley    Business       For 
                      Services                               Direct                  Sale 
                       GBP'000       GBP'000     GBP'000    GBP'000     GBP'000   GBP'000   GBP'000 
 Fees 
 Market based           16,096         1,146          90        355      17,687         -    17,687 
 Administration          2,259            36       1,486        578       4,359     2,157     6,516 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total fees             18,355         1,182       1,576        933      22,046     2,157    24,203 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Commission             12,772           141           9        231      13,153       153    13,306 
 Interest 
  turn                     898            12          12        175       1,097         -     1,097 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total                  32,025         1,335       1,597      1,339      36,296     2,310    38,606 
----------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 
 
 (1) The revenue figures for each division for the 
  quarter ended 30 June 2015 have been restated in line 
  with the classification of the Group's four operating 
  divisions used for the quarter ended 30 June 2016 
  to ensure a like for like comparison. 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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July 21, 2016 02:00 ET (06:00 GMT)