Charles Stanley Group PLC Fourth Quarter Trading Update (4978V)

TIDMCAY

RNS Number : 4978V

Charles Stanley Group PLC

15 April 2021

15 April 2021

CAY.L

Charles Stanley Group PLC

("Charles Stanley" or the "Group")

Fourth Quarter Trading Update for the financial year ended 31 March 2021

Charles Stanley, the wealth management services group, is pleased to provide a trading update for the fourth quarter of its financial year ended 31 March 2021.

Trading Update

Total Funds under Management and Administration ("FuMA") increased over the quarter to 31 March 2021 by 2.0% to GBP25.6 billion (31 December 2020: GBP25.1 billion). This rise mirrored positive market performance adding GBP0.5 billion to FuMA and compares favourably to a 1.6% increase in the MSCI PIMFA Private Investor Balanced Index over the same period. Gross inflows matched gross outflows. The Group's average FuMA over the financial year to 31 March 2021 was GBP23.2 billion, a decrease of 4.1% from GBP24.2 billion over the prior financial year, and reflected the stressed market conditions during the COVID-19 pandemic.

Total revenue for the year remained relatively stable at GBP171.2 million (unaudited) (31 March 2020: GBP173.0 million (audited)). Underlying this figure, fee income rose 3.2% and commission income by 1.5%, substantially offsetting a 68.8% reduction in interest income due to lower base rates.

The Group expects to release its audited preliminary results for the financial year ended 31 March 2021 on 27 May 2021.

Paul Abberley, Chief Executive Officer of Charles Stanley, said:

"Charles Stanley has delivered a notably resilient performance since the onset of COVID-19 just over a year ago. Revenues have held up well across all divisions, supported by our focus on excellent client service, and costs have been well controlled.

"We are cautiously optimistic that the worst of the pandemic is behind us and we expect to make further progress in the year ahead."

Charles Stanley Group PLC LEI: 213800LBSEGKE5MCYC90

For further information, please contact:

 
 Charles Stanley           Canaccord Genuity   Peel Hunt          KTZ Communications 
  Siobhan Griffiths         Emma Gabriel        Andrew Buchanan    Katie Tzouliadis 
  Via KTZ Communications    020 7523 8309       020 3597           020 3178 6378 
                                                8680 
 

Notes to editors:

Charles Stanley provides holistic wealth management services to private clients, charities, trusts and institutions. Its origins trace back to 1792 and the Group is one of the oldest firms on the London Stock Exchange. The Group has a national presence, with 26 locations and over 800 professionals. Its wealth management services are provided direct to clients and to intermediaries.

Funds under Management and Administration

 
                                       Mar 2021   Dec 2020   Sep 2020   Jun 2020 
                                          GBPbn      GBPbn      GBPbn      GBPbn 
 
 Discretionary funds                       15.2       14.9       13.6       13.4 
 Advisory managed funds                     1.3        1.3        1.2        1.3 
------------------------------------  ---------  ---------  ---------  --------- 
 Total managed funds                       16.5       16.2       14.8       14.7 
------------------------------------  ---------  ---------  ---------  --------- 
 Advisory dealing funds                     1.2        1.2        1.1        1.1 
 Execution-only funds                       7.9        7.7        6.9        6.8 
------------------------------------  ---------  ---------  ---------  --------- 
 Total administered funds                   9.1        8.9        8.0        7.9 
------------------------------------  ---------  ---------  ---------  --------- 
 
 Total FuMA                                25.6       25.1       22.8       22.6 
------------------------------------  ---------  ---------  ---------  --------- 
 
 MSCI WMA Private Investor Balanced 
  Index                                   1,704      1,677      1,568      1,574 
------------------------------------  ---------  ---------  ---------  --------- 
 

The change in FuMA since 31 December 2020 is explained in more detail in the table below:

 
                       Discretionary   Advisory   Advisory 
                             managed    managed    dealing   Execution-only     Total 
                               GBPbn      GBPbn      GBPbn            GBPbn     GBPbn 
 
 Funds at 1 January 
  2021                          14.9        1.3        1.2              7.7      25.1 
 
 
 New clients                     0.2          -          -              0.1       0.3 
 Transfers                         -          -          -                -         - 
 Net outflows from 
  existing clients             (0.1)          -          -                -     (0.1) 
 Lost clients                  (0.1)          -          -            (0.1)     (0.2) 
 
 
 Net flows of funds                -          -          -                -         - 
 
 
 Market movement                 0.3          -          -              0.2       0.5 
 
 
 Funds at 31 March 
  2021                          15.2        1.3        1.2              7.9      25.6 
 
 

Revenue

The table below sets out the unaudited revenues of the Group for the quarter ended 31 March 2021 along with the prior year comparatives on a like-for-like basis.

 
 Quarter ended 31 March 
  2021 
                Investment   Financial    Charles   Revenue 
                Management    Planning    Stanley 
                  Services                 Direct 
                      GBPm        GBPm       GBPm      GBPm 
 Fees                 30.0         3.0        1.8      34.8 
 Commission           11.1           -        0.8      11.9 
 Interest              0.3           -        0.1       0.4 
------------ 
 Total                41.4         3.0        2.7      47.1 
------------  ------------  ----------  ---------  -------- 
 
 Quarter ended 31 March 
  2020 
                Investment   Financial    Charles   Revenue 
                Management    Planning    Stanley 
                  Services                 Direct 
                      GBPm        GBPm       GBPm      GBPm 
 Fees                 27.3         2.6        1.4      31.3 
 Commission           10.8           -        0.6      11.4 
 Interest              1.5           -        0.7       2.2 
------------ 
 Total                39.6         2.6        2.7      44.9 
------------  ------------  ----------  ---------  -------- 
 
 
 Year-to-date 31 March 2021 
                Investment   Financial    Charles   Revenue 
                Management    Planning    Stanley 
                  Services                 Direct 
                      GBPm        GBPm       GBPm      GBPm 
 Fees                111.6        10.0        6.3     127.9 
 Commission           37.7           -        2.7      40.4 
 Interest              2.3           -        0.6       2.9 
------------ 
 Total               151.6        10.0        9.6     171.2 
------------  ------------  ----------  ---------  -------- 
 
 Year-to-date 31 March 2020 
                Investment   Financial    Charles   Revenue 
                Management    Planning    Stanley 
                  Services                 Direct 
                      GBPm        GBPm       GBPm      GBPm 
 Fees                109.6         8.7        5.6     123.9 
 Commission           38.1           -        1.7      39.8 
 Interest              7.1           -        2.2       9.3 
------------ 
 Total               154.8         8.7        9.5     173.0 
------------  ------------  ----------  ---------  -------- 
 

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April 15, 2021 02:00 ET (06:00 GMT)