Charles Stanley Group PLC Trading update (2576M)

TIDMCAY

RNS Number : 2576M

Charles Stanley Group PLC

27 July 2017

27 July 2017

Charles Stanley Group PLC

Trading update for the three months ended 30 June 2017

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading update for the first quarter ended 30 June 2017. The Group is showing steady growth in line with management expectations.

Total Funds under Management and Administration ("FuMA") at 30 June 2017 were GBP24.1 billion representing an increase of 0.4% against GBP24.0 billion at 31 March 2017. This represents a reasonable rate of growth when set against a backdrop of marginally adverse market conditions. Over the same period the FTSE UK Private Investor Balanced Index fell by 0.3%.

Significantly, this growth came under the higher margin discretionary fund category, which increased 3.5% (GBP0.4bn) in part due to transfers from lower margin advisory services. Advisory managed and advisory dealing fund categories fell by 4.2% (GBP0.1bn) and 5.6% (GBP0.1bn) respectively during the quarter. Execution-only fell by 1.2% (GBP0.1bn) overall although Charles Stanley Direct continued its strong progress, up 4.6% to GBP2.4bn.

Total Group revenues on a year-to-date basis are up 13.3% from GBP33.8 million to GBP38.3 million. Excluding EBS Management PLC, the pensions administration business which was sold by the Group on 31 May 2017, revenues from continuing activities for the quarter ended 30 June 2017 increased by 13.9% to GBP37.7 million (quarter to 30 June 2016: GBP33.1 million).

Paul Abberley, Chief Executive Officer, commented:

"Trading conditions remain stable against the backdrop of a relatively flat market over Q1. Our strategy remains on track to deliver long term growth in revenues, margins and profits, which in turn will support our progressive dividend policy and thus generate long-term shareholder value."

For further information, please contact:

 
  Charles Stanley     Canaccord           Peel            Redleaf Communications 
   Joanne Vowles       Genuity             Hunt            Charlie Geller 
   Public Relations    Andrew Buchanan     Guy Wiehahn     020 7382 4730 
   Manager             020 7523            020 7418        [e-mail] 
   Via Redleaf         4661                8893 
 

Notes to editors:

Charles Stanley traces its origins back directly to 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 400 professionals located in 24 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 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 17   Mar 17    since 
                              GBPbn    GBPbn   Mar 17 
 
 Discretionary funds           11.8     11.4     3.5% 
 Advisory managed funds         2.3      2.4   (4.2%) 
--------------------------  -------  -------  ------- 
 Total managed funds           14.1     13.8     2.2% 
--------------------------  -------  -------  ------- 
 Advisory dealing funds         1.7      1.8   (5.6%) 
 Execution only funds           8.3      8.4   (1.2%) 
--------------------------  -------  -------  ------- 
 Total administered funds      10.0     10.2   (2.0%) 
--------------------------  -------  -------  ------- 
 
 Total FuMA                    24.1     24.0     0.4% 
 
 
 FTSE UK Private Investor 
  Balanced Index              4,110    4,122   (0.3%) 
 
 

The change in managed funds since 31 March 2017 is explained in more detail in the table below:

 
                                 Discretionary              Advisory 
                                       managed               managed                  Total   Change 
                                         GBPbn                 GBPbn                  GBPbn        % 
 
 Funds at 1 April 
  2017                                    11.4                   2.4                   13.8 
 
 
 New clients                               0.1                     -                    0.1 
 Transfers                                 0.1                 (0.1)                      - 
 Net inflow/(outflow) 
  from existing clients                    0.4                     -                    0.4 
 Lost clients                            (0.1)                     -                  (0.1) 
 
 
 Net inflow/(outflow) 
  of funds                                 0.5                 (0.1)                    0.4     2.9% 
 
 
 Market movement                         (0.1)                     -                  (0.1)   (0.7%) 
 
 
 Funds at 30 June 
  2017                                    11.8                   2.3                   14.1     2.2% 
 
 

REVENUE

The table below sets out the revenues of the Group for the quarter ended 30 June 2017 along with the prior year comparatives on a like for like basis.

 
 Quarter ended 30 June 2017 
                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 
 Fees ex 
  trail             21,279         1,734       1,299        564      24,876       542    25,418 
 Trail                 165             2           -        308         475         -       475 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total fees         21,444         1,736       1,299        872      25,351       542    25,893 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Commission         11,452           207          11        376      12,046         -    12,046 
 Interest 
  income               267             5           -         48         320         -       320 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total              33,163         1,948       1,310      1,296      37,717       542    38,259 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 
 
 Quarter ended 30 June 2016 (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 
 Fees ex 
  trail             17,465         1,359       1,019        367      20,210       697    20,907 
 Trail                 250             5           1        240         496         -       496 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total fees         17,715         1,364       1,020        607      20,706       697    21,403 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Commission         11,295           156           6        283      11,740         -    11,740 
 Interest 
  income               514             7           4        119         644         1       645 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 Total              29,524         1,527       1,030      1,009      33,090       698    33,788 
------------  ------------  ------------  ----------  ---------  ----------  --------  -------- 
 
 
 (1) The revenue figures for the quarter ended 30 
  June 2016 have been presented in line with the 
  classification of the Group's four operating divisions 
  used for the quarter ended 30 June 2017 to ensure 
  a like for like comparison. Held For Sale revenues 
  for the quarter ended 30 June 2017 is in respect 
  of EBS Management PLC, which was sold by the Group 
  on 31 May 2017 and was previously reported within 
  the Financial Planning division. 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 27, 2017 02:48 ET (06:48 GMT)