31st Oct 2008 14:04
Share plc
PRESS RELEASE
Benchmarked Revenue Data - Q3 2008
Quarterly Peer Group Market Share of 5.18%
In line with the commitments made in Share plc's Annual Report and AIM Admission Document, the company is publishing its quarterly benchmarked revenue data. This data is compiled by Compeer Limited, the independent company which collates data across the stockbroking and wealth management communities, and compares the revenue data of The Share Centre Limited against a peer group of ten other companies*.
It should be noted that since the data for the first quarter of 2008 was published the peer group has been expanded following one new entrant to the Compeer service. The historic figures have been restated to reflect this addition and therefore appear lower as The Share Centre's revenue share is being taken as a proportion of a larger data set.
The Share Centre's market share of the peer group's revenues dropped to 5.18% in Q3 2008 (5.31% in Q2 2008).
|
Quarter |
Market Share |
|
Q1 06 |
4.54% |
|
Q2 06 |
4.69% |
|
Q3 06 |
5.11% |
|
Q4 06 |
4.97% |
|
Q1 07 |
5.13% |
|
Q2 07 |
5.05% |
|
Q3 07 |
5.21% |
|
Q4 07 |
5.24% |
|
Q1 08 |
5.53% |
|
Q2 08 |
5.31% |
|
Q3 08 |
5.18% |
The data this quarter covers a period marked by several special factors.
We believe The Share Centre's business model attracts a higher quality (more repetitive) balance of revenues than that of the peer group. In the third quarter 24% of The Share Centre's revenues came from dealing commission, 41% from fees and 35% from interest. This compares to a respective split of 53%, 10% and 36% for the peer group.
As a consequence, the increase in dealing volumes driven by market volatility (total trades across the peer group including The Share Centre were 2.3m in Q3 compared to 2.1m in Q2) drives a bigger increase in peer group revenues than in those of The Share Centre, all else being equal. In addition, dealing volumes were particularly high in the shares of banks affected by the credit crunch, which would have disproportionately favoured the stockbroking arms of those banks. The Share Centre's share of fee and interest income actually rose in the third quarter compared with the second.
The Directors believe the company is still making progress against its peers and believes this will be reflected once a period of calm returns to the market.
* The peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, E\* Trade Securities, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, NatWest Stockbrokers (RBS), Saga Personal Finance, Self Trade, and TD Waterhouse Investor Services Europe.
For further information please contact:
Share plc 01296 414141
Gavin Oldham, Chief Executive
Richard Stone, Finance Director
Barbara Pierssene, Company Secretary
KBC Peel Hunt Ltd, Nominated Adviser and Broker 020 7418 8900
Guy Wiehahn or Oliver Stratton.
Related Shares:
SHRE.L