Charles Stanley Group PLC Trading Update (9925E)

TIDMCAY

RNS Number : 9925E

Charles Stanley Group PLC

10 July 2019

10 July 2019

Charles Stanley Group PLC

Trading update for the three months ended 30 June 2019

Charles Stanley Group PLC ("Charles Stanley" or the "Group") today issues a trading update for the quarter ended 30 June 2019.

Total Funds under Management and Administration ("FuMA") at 30 June 2019 improved to GBP24.4 billion, representing an increase of 1.2% on the GBP24.1 billion reported at 31 March 2019. In the quarter, the MSCI WMA Private Investor Balanced Index was up 2.8% whilst the FTSE 100 index increased at a lower rate of 2.0%. The Group generated investment performance gains of GBP0.9 billion over the period, which more than offset net outflows of GBP0.6 billion.

As a result of the Group's focus on growing the higher margin discretionary service, this category continues to outperform other service types with FuMA up 3.1%. Advisory managed and execution-only funds were flat, with a small fall in advisory dealing FuMA.

Core Business revenues for the quarter increased by 5.9% to GBP41.5 million from GBP39.2 million. This was driven by fee income growth, up 7.7%. Fees grew both as a result of the continuing service mix change toward discretionary and the completion of the repricing exercise at the end of the last financial year. Interest income was up GBP0.8 million, a reflection of higher interest rates and cash balances than a year ago. These increases more than compensated for a continued decline in commission income.

Paul Abberley, Chief Executive Officer of Charles Stanley, said: "I am pleased to see that revenues and Funds under Management and Administration continue to grow. These are a result of our previous strategic decisions and the improvements have allowed us to focus on the implementation of our transformation programme to improve productivity and operational efficiency."

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    Ian Silvera 
  Via Newgate Communications   020 7523 4677       020 7418       Megan Kovach 
                                                   8893           020 3757 6884 
                                                                  [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 800 professionals located in 27 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

 
                                       Jun 19   Mar 19       Change 
                                                          since Mar 
                                                                 19 
                                        GBPbn    GBPbn 
 
 Discretionary funds                     13.5     13.1         3.1% 
 Advisory managed funds                   1.5      1.5           -% 
------------------------------------  -------  -------  ----------- 
 Total managed funds                     15.0     14.6         2.7% 
------------------------------------  -------  -------  ----------- 
 Advisory dealing funds                   1.2      1.3       (7.7%) 
 Execution only funds                     8.2      8.2           -% 
------------------------------------  -------  -------  ----------- 
 Total administered funds                 9.4      9.5       (1.1%) 
------------------------------------  -------  -------  ----------- 
 
 Total FuMA                              24.4     24.1         1.2% 
 
 
 MSCI WMA Private Investor Balanced 
  Index                                 1,632    1,587         2.8% 
 
 

The change in FuMA since 31 March 2019 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 April 
  2019                              13.1        1.5        1.3              8.2      24.1 
 
 
 New clients                         0.1          -          -              0.1       0.2 
 Transfers                             -          -          -                -         - 
 Net inflow/(outflow) 
  from existing clients            (0.1)          -          -            (0.2)     (0.3) 
 Lost clients                      (0.2)          -      (0.1)            (0.2)     (0.5) 
 
 
 Net inflow/(outflow) 
  of funds                         (0.2)          -      (0.1)            (0.3)     (0.6) 
 
 
 Market movement                     0.6          -          -              0.3       0.9 
 
 
 Funds at 30 June 
  2019                              13.5        1.5        1.2              8.2      24.4 
 
 

REVENUE

The table below set out the revenues of the Group for the quarter ended 30 June 2019 along with the prior year comparatives on a like-for-like basis.

Quarter to 30 June 2019

 
                                Investment                    Charles 
                                Management     Financial      Stanley           Core 
                               Services(1)      Planning       Direct       Business 
                                      GBPm          GBPm         GBPm           GBPm 
 
 Fee income                           26.2           1.7          1.3           29.2 
 Commission                            9.5             -          0.4            9.9 
 Interest income                       1.9             -          0.5            2.4 
--------------------  --------------------  ------------  -----------  ------------- 
 Total                                37.6           1.7          2.2           41.5 
--------------------  --------------------  ------------  -----------  ------------- 
 
 
   Quarter to 30 June 2018 
                                Investment                    Charles 
                                Management     Financial      Stanley           Core 
                               Services(1)      Planning       Direct       Business 
                                      GBPm          GBPm         GBPm           GBPm 
 
 Fee income                           24.6           1.7          0.8           27.1 
 Commission                           10.1             -          0.4           10.5 
 Interest income                       1.1             -          0.5            1.6 
-------------------------  ---------------  ------------  -----------  ------------- 
 Total                                35.8           1.7          1.7           39.2 
-------------------------  ---------------  ------------  -----------  ------------- 
 
 
 

(1) As part of the recently announced reorganisation, the management of the Asset Management division has been combined with that of the Investment Management Services division. Accordingly, Asset Management's figures have been incorporated into those of Investment Management Services and not reported separately.

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July 10, 2019 02:00 ET (06:00 GMT)