1st Quarter Results

INTERIM MANAGEMENT STATEMENT

26 July 2013

QUARTER ENDED 30 JUNE 2013

This statement, issued on the day of our Annual General Meeting, is an Interim Management Statement ("IMS") in accordance with the UK Listing Authority's Disclosure and Transparency Rules. It covers the period from 1 April 2013 to 26 July 2013, and includes trading results for the three months ended 30 June 2013.

Charles Stanley Group PLC announces that its revenue for the three months to 30 June 2013, the first quarter of its financial year 2013/14, was 31% higher, at £36.9 million, than the comparable figure of £28.2 million for the three months to 30 June 2012. Higher levels of funds under management and an increasingly confident market have helped lift both fee and commission income levels.

Total client funds stand at £17.66 billion, a decrease of 0.3% from the figure of £17.72 billion at 31 March 2013. Within this figure discretionary managed funds increased by 1.4% from £6.38 billion to £6.47 billion reflecting a net inflow of funds during the period. Over the same period the FTSE 100 Index and the APCIMS Balanced Portfolio Index decreased by 3.0% and 2.1% respectively.

Increased levels of funds under management and the strong performance of the market for most of our first quarter have helped drive our fee income upwards by 30% compared with the same period last year. Although the second half of June saw the FTSE 100 Index fall by 1.5%, this has quickly been recovered in July with the FTSE 100 Index now at around 6,600 and the APCIMS Balanced Portfolio Index at about 3,300. Fee income represented approximately 59% of our revenue over the period.

It is pleasing to note that the progress started in the second half of last year has continued. Though there are still significant challenges that lie ahead for the wealth management industry, our optimism for the remainder of the year is still a touch higher than it was this time last year.

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Funds under management and administration are analysed below:

Funds under management decreased by 0.4% during the quarter and this change is analysed in more detail in the following table.

REVENUE

Quarter ended 30 June 2013

Quarter ended 30 June 2012

'*In January 2013 a new division was created - Charles Stanley Direct. This division provides a direct-to-client investment service. As part of this re-structuring our online dealing service, Fastrade, was transferred over from the Investment Management Services division and our discount intermediary service, Garrison, was transferred over from the Financial Services division. The comparatives for the quarter ended 30 June 2012 have been adjusted to reflect this change. The revenues for Charles Stanley Direct are lower for the quarter due to an introductory offer, offering a reduction in fees for existing clients to transfer. This process has now been successfully completed. Since Charles Stanley Direct was launched, we have opened 1,282 new accounts and AUA are now over £530 million.

Notes for editors

Charles Stanley Group PLC has four trading companies, Charles Stanley & Co. Limited, EBS Management PLC, Charles Stanley Financial Solutions Limited, Garrison Investment Analysis Limited.

Charles Stanley & Co. Limited provides full-service stockbroking, financial planning and benefit consultancy and small and mid cap advisory and institutional broking.

EBS Management PLC provides specialist pensions administration services. Charles Stanley Financial Solutions Limited is a specialist provider of corporate employee benefits services. Garrison Investment Analysis Limited markets unit trusts, open-ended investment company units and packaged financial products to private clients, both directly and in wrappers such as ISAs and pensions.

All four trading companies are regulated by the Financial Conduct Authority. The Group has 32 offices around the United Kingdom.