Charles Stanley Group PLC Trading Update (3152N)

TIDMCAY

RNS Number : 3152N

Charles Stanley Group PLC

17 January 2019

17 January 2019

Charles Stanley Group PLC

Trading update for the three months ended 31 December 2018

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading update for the quarter ended 31 December 2018.

Total Funds under Management and Administration ("FuMA") at 31 December 2018 were GBP22.8 billion representing a decrease of 8.8% on the GBP25.0 billion at 30 September 2018. The fall in funds reflects the sharp fall in equity markets seen in the quarter. Over the same period the MSCI WMA Private Investor Balanced Index fell by 7.9% whilst the FTSE 100 index was down 10.4%.

FuMA in every service type were negatively impacted by the challenging market conditions. Nevertheless the Group continued to deliver stable inflows in the quarter, particularly in the higher margin Discretionary service, which grew by GBP0.2bn, equivalent to an annualised net organic growth rate of 6.1%. Advisory Managed and Advisory Dealing continued the trend of transferring funds to other service types, whilst Execution-only funds were flat excluding market movements.

Core Business revenues for the year-to-date rose by 3.4% to GBP115.1 million from GBP111.3 million. Revenues for the quarter showed a slight improvement against the prior year, up 0.3% despite the drop in assets. Fee income increased 1.9% due to strong growth achieved by the Financial Planning and Charles Stanley Direct divisions, up 26.7% and 27.3% respectively, compensating for small declines in the Investment Management Services and Asset Management divisions.

Commission income for the quarter was down GBP2.1m with trading activity by volume 17% lower by comparison to the prior year. This was in part compensated for by GBP1.7m higher interest income, reflecting higher interest rates than a year ago.

Paul Abberley, Chief Executive Officer of Charles Stanley, said: "Despite difficult market conditions in Q3, which have had a significant negative impact on headline Funds under Management and Administration, I am pleased to report that we continued to win new Discretionary mandates and that Financial Planning and Charles Stanley Direct delivered strong increases in revenues. We will continue to invest in scaling these divisions as part of our holistic wealth management proposition."

Charles Stanley Group PLC LEI: 213800LBSEGKE5MCYC90

For further information, please contact:

 
 Charles Stanley              Canaccord Genuity   Peel Hunt      Newgate Communications 
  Siobhan Griffiths            David Tyrrell       Guy Wiehahn    Adam Lloyd 
  Via Newgate Communications   020 7523 4677       020 7418       020 3757 6884 
                                                   8893           [e-mail] 
 

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 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 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

 
                                       Dec 18   Sep 18   Mar 18 
                                        GBPbn    GBPbn    GBPbn 
 
 Discretionary funds                     12.2     13.2     12.3 
 Advisory managed funds                   1.5      1.7      1.8 
------------------------------------  -------  -------  ------- 
 Total managed funds                     13.7     14.9     14.1 
------------------------------------  -------  -------  ------- 
 Advisory dealing funds                   1.2      1.4      1.4 
 Execution only funds                     7.9      8.7      8.3 
------------------------------------  -------  -------  ------- 
 Total administered funds                 9.1     10.1      9.7 
------------------------------------  -------  -------  ------- 
 
 Total FuMA                              22.8     25.0     23.8 
 
 
 MSCI WMA Private Investor Balanced 
  Index                                 1,484    1,612    1,527 
 
 

The change in FuMA since 30 September 2018 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 
  2018                              13.2        1.7        1.4              8.7      25.0 
 
 
 New clients                         0.2          -          -              0.2       0.4 
 Transfers                             -      (0.1)      (0.1)              0.2         - 
 Net inflow/(outflow) 
  from existing clients                -          -          -            (0.2)     (0.2) 
 Lost clients                          -          -          -            (0.2)     (0.2) 
 
 
 Net inflow/(outflow) 
  of funds                           0.2      (0.1)      (0.1)                -         - 
 
 
 Market movement                   (1.2)      (0.1)      (0.1)            (0.8)     (2.2) 
 
 
 Funds at 31 December 
  2018                              12.2        1.5        1.2              7.9      22.8 
 
 

REVENUE

The tables below set out the revenues of the Group for the quarter ended 31 December 2018 and the year-to-date to 31 December 2018 along with the prior year comparatives on a like-for-like basis.

 
 Quarter ended 31 December 2018 
               Investment                                             Charles 
               Management           Asset Management    Financial     Stanley        Core 
                 Services                                Planning      Direct    Business 
                     GBPm                       GBPm         GBPm        GBPm        GBPm 
 
 Fee income          22.6                        1.5          1.9         1.4        27.4 
 Commission           7.2                        0.2            -         0.3         7.7 
 Interest 
  income              1.9                          -            -         0.4         2.3 
------------  -----------  -------------------------  -----------  ----------  ---------- 
 Total               31.7                        1.7          1.9         2.1        37.4 
------------  -----------  -------------------------  -----------  ----------  ---------- 
 
 
 Quarter ended 31 December 2017 
               Investment                                                         Charles 
               Management           Asset Management                Financial     Stanley        Core 
                 Services                                            Planning      Direct    Business 
                     GBPm                       GBPm                     GBPm        GBPm        GBPm 
 
 Fee income          22.7                        1.6                      1.5         1.1        26.9 
 Commission           9.2                        0.2                        -         0.4         9.8 
 Interest 
  income              0.5                          -                        -         0.1         0.6 
------------  -----------  -------------------------  -----------------------  ----------  ---------- 
 Total               32.4                        1.8                      1.5         1.6        37.3 
------------  -----------  -------------------------  -----------------------  ----------  ---------- 
 
 
 
 
 Year-to-date 31 December 2018 
               Investment                                 Charles                    Held 
               Management         Asset    Financial      Stanley        Core         For 
                 Services    Management     Planning       Direct    Business        Sale       Total 
                     GBPm          GBPm         GBPm         GBPm        GBPm        GBPm        GBPm 
 
 Fee income          68.8           4.8          5.4          3.6        82.6           -        82.6 
 Commission          25.6           0.7            -          1.1        27.4           -        27.4 
 Interest 
  income              4.2             -            -          0.9         5.1           -         5.1 
------------  -----------  ------------  -----------  -----------  ----------  ----------  ---------- 
 Total               98.6           5.5          5.4          5.6       115.1           -       115.1 
------------  -----------  ------------  -----------  -----------  ----------  ----------  ---------- 
 
 
 Year-to-date 31 December 2017 
               Investment                                 Charles                    Held 
               Management         Asset    Financial      Stanley        Core         For 
                 Services    Management     Planning       Direct    Business     Sale(1)       Total 
                     GBPm          GBPm         GBPm         GBPm        GBPm        GBPm        GBPm 
 
 Fee income          66.4           4.4          4.4          2.9        78.1         0.5        78.6 
 Commission          30.3           0.7            -          1.1        32.1           -        32.1 
 Interest 
  income              0.9             -            -          0.2         1.1           -         1.1 
------------  -----------  ------------  -----------  -----------  ----------  ----------  ---------- 
 Total               97.6           5.1          4.4          4.2       111.3         0.5       111.8 
------------  -----------  ------------  -----------  -----------  ----------  ----------  ---------- 
 
 

(1) Held For Sale represents revenue from EBS Management PLC, which was sold by the Group on 31 May 2017.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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January 17, 2019 02:00 ET (07:00 GMT)