8th May 2008 07:01
Close Brothers Group PLC08 May 2008 CLOSE BROTHERS GROUP plc INTERIM MANAGEMENT STATEMENTFor the three months ended 30 April 2008 Close Brothers Group plc ("Close Brothers" or "the group"), the independentinvestment bank, today issues its Interim Management Statement ("IMS") inaccordance with FSA Disclosure and Transparency Rule 4.3. This statement relatesto the quarter from 1 February 2008 to 30 April 2008. Group and Divisional performanceAgainst a background of general market uncertainty and particularly challengingconditions in the credit markets, the group's performance continues to beresilient. In the Banking division we continue to see good demand for our specialisedlending services and achieved steady growth in our loan book. During the periodwe have seen no significant increase in bad debts. Market conditions remained testing for our Asset Management division and fundsremained steady at £8.9bn. As expected, raising new funds and launching newproducts have been difficult. However, the diversity of the division has helpedto mitigate the impact of volatile markets. In our Securities division Winterflood's performance remains consistent with thefirst half year. However, in Germany market conditions have deteriorated forSeydler and we do not foresee any improvement in the current financial year. For Corporate Finance the market remains somewhat muted despite a stronger Q3and ongoing good performance in Europe. We have not yet seen any uplift in therestructuring market. LiquidityThe group's conservative approach to balance sheet management means that theBanking division remains well capitalised and soundly financed. Deposits havecontinued to grow and we have a range of long-term committed facilities. Lookingforward we continue to practise prudence and the rate of future loan book growthwill be determined by our continued ability to raise similar facilities. Notable eventsOn 27 March 2008 the group announced the acquisition of two niche lendingbusinesses, Commercial Acceptances Group, a leading UK short-term and bridginglender, and Amber Credit, a specialist insurance premium finance business, witha combined loan book value of £145 million, for a combined premium to net assetsof circa £9 million. These businesses are expected on average to generatereturns on gross assets in line with the returns produced by Close Brothers'Banking division. Accordingly the transactions will be earnings enhancing in FY2009. As part of the ongoing reorganisation of the business that we outlined at thetime of the Interim Results there have been some senior management changes. On10 April 2008 Martin Andrew was appointed as Chief Executive of the AssetManagement division. He will also join the Group Management Board. JonathanSieff is leaving the business. In a separate announcement today, the Board has announced that David Pusinelli,the Group Development Director will be stepping down from the Board. He willleave the business on 31 July 2008. OutlookThe outlook broadly remains as it was at the end of our first half. We expect that uncertain market conditions will continue to affect performancein our Securities and Corporate Finance divisions. We take comfort from the broad spread of our asset management activitiesalthough we expect raising new funds and attracting new assets in this climateto remain difficult. We continue to expect a solid second half performance fromour Banking division and we will be on guard for any possible increase in baddebts as a result of the deteriorating economic background. Enquiries to: Close BrothersColin Keogh 020 7655 3100Justin Clark 020 7655 3100 MaitlandEmma Burdett 020 7379 5151Anthony Silverman 020 7379 5151 Further information on Close Brothers can be found on the company's website atwww.closebrothers.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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