Charles Stanley Group PLC Third Quarter Trading Update (4555L)

TIDMCAY

RNS Number : 4555L

Charles Stanley Group PLC

13 January 2021

13 January 2021

CAY.L

Charles Stanley Group PLC

("Charles Stanley" or the "Group")

Third Quarter Trading Update for the three months ended 31 December 2020

Charles Stanley, the wealth management services group, is pleased to provide a trading update for the third quarter of its financial year, covering the three months ended 31 December 2020.

Trading Update

Total Funds under Management and Administration ("FuMA") as at 31 December 2020 have risen by 10.1% to GBP25.1 billion over the quarter (30 September 2020: GBP22.8 billion). The increase largely reflects the market improvement of GBP2.2 billion, with net inflows of GBP0.1 billion. It compares to a 7.0% increase in the MSCI WMA Private Investor Balanced Index over the same period. Average FuMA over the first three quarters to December 2020 was GBP22.6 billion, 7.8% lower than over the same period to December 2019 at GBP24.5 billion.

Total revenues over the three months remained stable, decreasing marginally by 1.2% to GBP42.2 million (Q3 2020: GBP42.7 million), with increases in fee income of 3.2% and commission income of 4.3% offsetting a significant contraction in interest turn. Total revenues for the financial year-to-date 31 December 2020 declined to GBP124.1 million (YTD 31 December 2019: GBP128.1 million). This decrease is accounted for by the 65% drop in interest turn following the fall in interest rates in March 2020 while both fee and commission income remained strong. Revenue margins improved by 3.6bps to 73.2 bps (YTD 31 December 2019: 69.6 bps).

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

"The Group has continued to demonstrate significant resilience in the face of the ongoing pandemic, and we are encouraged to see modest net inflows of FuMA during the third quarter as well as stable revenue levels. Whilst uncertainty remains over the length of current market disruption as a result of the COVID-19 pandemic, we are confident that we will continue to make progress in the final quarter of our financial year."

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 850 professionals. Its wealth management services are provided direct to clients and to intermediaries.

Funds under Management and Administration

 
                                       Dec 2020   Sep 2020   Jun 2020   Mar 2020 
                                          GBPbn      GBPbn      GBPbn      GBPbn 
 
 Discretionary funds                       14.9       13.6       13.4       12.0 
 Advisory managed funds                     1.3        1.2        1.3        1.2 
------------------------------------  ---------  ---------  ---------  --------- 
 Total managed funds                       16.2       14.8       14.7       13.2 
------------------------------------  ---------  ---------  ---------  --------- 
 Advisory dealing funds                     1.2        1.1        1.1        1.0 
 Execution-only funds                       7.7        6.9        6.8        6.0 
------------------------------------  ---------  ---------  ---------  --------- 
 Total administered funds                   8.9        8.0        7.9        7.0 
------------------------------------  ---------  ---------  ---------  --------- 
 
 Total FuMA                                25.1       22.8       22.6       20.2 
------------------------------------  ---------  ---------  ---------  --------- 
 
 MSCI WMA Private Investor Balanced 
  Index                                   1,677      1,568      1,574      1,423 
------------------------------------  ---------  ---------  ---------  --------- 
 

The change in FuMA since 30 September 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 October 
  2020                            13.6        1.2        1.1              6.9      22.8 
 
 
 New clients                       0.2          -          -              0.1       0.3 
 Transfers                           -          -          -                -         - 
 Net outflows from                   -          -          -                -         - 
  existing clients 
 Lost clients                    (0.1)          -          -            (0.1)     (0.2) 
 
 
 Net inflows of funds              0.1          -          -                -       0.1 
 
 
 Market movement                   1.2        0.1        0.1              0.8       2.2 
 
 
 Funds at 31 December 
  2020                            14.9        1.3        1.2              7.7      25.1 
 
 

Revenue

The table below sets out the unaudited revenues of the Group for the quarter ended 31 December 2020 along with the prior year comparatives on a like-for-like basis.

 
 Quarter ended 31 December 
  2020 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    28.0         2.5        1.6      32.1 
 Commission               8.9           -        0.7       9.6 
 Interest turn            0.4           -        0.1       0.5 
--------------- 
 Total                   37.3         2.5        2.4      42.2 
---------------  ------------  ----------  ---------  -------- 
 
 Quarter ended 31 December 
  2019 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    27.5         2.2        1.4      31.1 
 Commission               8.9           -        0.3       9.2 
 Interest turn            1.9           -        0.5       2.4 
--------------- 
 Total                   38.3         2.2        2.2      42.7 
---------------  ------------  ----------  ---------  -------- 
 
 
 Year-to-date 31 December 2020 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    81.6         7.0        4.5      93.1 
 Commission              26.6           -        1.9      28.5 
 Interest turn            2.0           -        0.5       2.5 
--------------- 
 Total                  110.2         7.0        6.9     124.1 
---------------  ------------  ----------  ---------  -------- 
 
 Year-to-date 31 December 2019 
                   Investment   Financial    Charles   Revenue 
                   Management    Planning    Stanley 
                     Services                 Direct 
                         GBPm        GBPm       GBPm      GBPm 
 
 Fees                    82.3         6.1        4.3      92.7 
 Commission              27.3           -        1.0      28.3 
 Interest turn            5.6           -        1.5       7.1 
--------------- 
 Total                  115.2         6.1        6.8     128.1 
---------------  ------------  ----------  ---------  -------- 
 

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January 13, 2021 02:00 ET (07:00 GMT)