Charles Stanley Group PLC Q2 Trading Update & Notice of Results (1056C)

TIDMCAY

RNS Number : 1056C

Charles Stanley Group PLC

15 October 2020

CAY.L

Charles Stanley Group PLC

("Charles Stanley" or the "Group")

Trading Update for the Three Months ended 30 September 2020 and Notice of Results

Charles Stanley, the wealth management services group, is pleased to provide a trading update for the second quarter of its financial year, covering the three months ended 30 September 2020.

Trading Update

Total Funds under Management and Administration ("FuMA") in the quarter increased by 0.9% to GBP22.8 billion against the prior quarter. This compared to a 0.4% decrease over the same period in the MSCI WMA Private Investor Balanced Index. Compared to the financial year-end position at 31 March 2020, FuMA were up 12.9%. However, this material movement mainly reflected the market disruption caused by the coronavirus pandemic, and average FuMA over the first half of GBP22.1 billion was 9.4% lower than average FuMA of GBP24.4 billion over the first half of last year.

Group revenue for the quarter decreased by 6.8% to GBP39.9 million (Q2 2020: GBP42.8 million), resulting in a 4.1% reduction over the first half to GBP82.0 million (H1 2020: GBP85.4 million). The relative outperformance of revenues over the six months by comparison to average FuMA is the result of an improved revenue margin, which increased by 4.4bps to 74.3bps (H1 2020: 69.9 bps) as discretionary funds increased to 59.7% of total FuMA (H1 2020:56.5%), fees and commissions were stable, aided by the growth of the Financial Planning division, and interest income declined.

Notice of Results

The Group's unaudited interim results for the six months ended 30 September 2020 will be published on 19 November 2020.

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

"The Group has traded and operated resiliently during the first half. Our focus remains on supporting clients and staff during these difficult times, and we are confident of further progress during the second half."

Charles Stanley Group PLC LEI: 213800LBSEGKE5MCYC90

For further information, please contact:

 
 Charles Stanley           Canaccord Genuity   Peel Hunt          KTZ Communications 
  Siobhan Griffiths         David Tyrrell       Andrew Buchanan    Katie Tzouliadis 
  Via KTZ Communications    020 7523 4677       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 850 professionals. Its wealth management services are provided direct to clients and to intermediaries

Funds under Management and Administration

 
                                       Sep 2020   Jun 2020   Mar 2020 
                                          GBPbn      GBPbn      GBPbn 
 
 Discretionary funds                       13.6       13.4       12.0 
 Advisory managed funds                     1.2        1.3        1.2 
------------------------------------  ---------  ---------  --------- 
 Total managed funds                       14.8       14.7       13.2 
------------------------------------  ---------  ---------  --------- 
 Advisory dealing funds                     1.1        1.1        1.0 
 Execution-only funds                       6.9        6.8        6.0 
------------------------------------  ---------  ---------  --------- 
 Total administered funds                   8.0        7.9        7.0 
------------------------------------  ---------  ---------  --------- 
 
 Total FuMA                                22.8       22.6       20.2 
------------------------------------  ---------  ---------  --------- 
 
 MSCI WMA Private Investor Balanced 
  Index                                   1,568      1,574      1,423 
------------------------------------  ---------  ---------  --------- 
 

The change in FuMA since 30 June 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 July 2020              13.4        1.3        1.1              6.8      22.6 
 
 
 New clients                        0.1          -          -              0.1       0.2 
 Transfers                            -          -          -                -         - 
 Net outflows from 
  existing clients                (0.1)          -          -            (0.1)     (0.2) 
 Lost clients                     (0.1)      (0.1)          -            (0.1)     (0.3) 
 
 
 Net outflows of funds            (0.1)      (0.1)          -            (0.1)     (0.3) 
 
 
 Market movement                    0.3          -          -              0.2       0.5 
 
 
 Funds at 30 September 
  2020                             13.6        1.2        1.1              6.9      22.8 
 
 

Revenue

The table below sets out the unaudited revenues of the Group for the quarter ended 30 September 2020 along with the prior year comparatives on a like-for-like basis.

 
 Quarter ended 30 September 
  2020 
                    Investment   Financial    Charles   Revenue 
                    Management    Planning    Stanley 
                      Services                 Direct 
                          GBPm        GBPm       GBPm      GBPm 
 
 Fees                     27.0         2.2        1.6      30.8 
 Commission                8.1           -        0.5       8.6 
 Interest turn             0.4           -        0.1       0.5 
---------------- 
 Total                    35.5         2.2        2.2      39.9 
----------------  ------------  ----------  ---------  -------- 
 
 Quarter ended 30 September 
  2019 
                    Investment   Financial    Charles   Revenue 
                    Management    Planning    Stanley 
                      Services                 Direct 
                          GBPm        GBPm       GBPm      GBPm 
 
 Fees                     27.7         2.2        1.5      31.4 
 Commission                8.8           -        0.3       9.1 
 Interest turn             1.8           -        0.5       2.3 
---------------- 
 Total                    38.3         2.2        2.3      42.8 
----------------  ------------  ----------  ---------  -------- 
 
 
 Six months ended 30 September 2020 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    53.7         4.5        2.9      61.1 
 Commission              17.7           -        1.2      18.9 
 Interest turn            1.6           -        0.4       2.0 
--------------- 
 Total                   73.0         4.5        4.5      82.0 
---------------  ------------  ----------  ---------  -------- 
 
 Six months ended 30 September 2019 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    54.8         3.9        2.9      61.6 
 Commission              18.4           -        0.7      19.1 
 Interest turn            3.7           -        1.0       4.7 
--------------- 
 Total                   76.9         3.9        4.6      85.4 
---------------  ------------  ----------  ---------  -------- 
 

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October 15, 2020 02:00 ET (06:00 GMT)