18th Apr 2016 07:00
18 April 2016
Charles Stanley Group PLC
Year end Trading Update and Notice of Results
Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading update for the 12 months ended 31 March 2016, ahead of announcing its preliminary results on Thursday 16 June 2016.
Total funds under management and administration at 31 March 2016 were £20.5 billion representing a decrease of 3.8% compared to £21.3 billion at 31 March 2015. Over the same period, the FTSE 100 declined by 8.8% and the WMA Balanced Portfolio Index dropped by 3.5%.
Revenues from continuing operations for the year ended 31 March 2016 decreased by 3.3% to £136.3 million (31 March 2015: £140.9 million). Total revenues are down by 5.4% to £141.5 million compared to the prior year (31 March 2015: £149.5 million) reflecting a decline in the Group's held for sale business activities, particularly the Corporate Finance division which was sold in July 2015.
Paul Abberley, Chief Executive Officer, commented:
"Despite the challenging trading conditions and volatile markets experienced during the second half of the financial year, the level of discretionary funds has remained stable and investment management fees have grown marginally. The focus from Management continues to be on the implementation of the Group's turnaround strategy, where progress has been made in a number of areas, and we remain confident in our long term prospects."
For further information, please contact:
Charles Stanley Joanne Vowles PR Manager Via Redleaf | Canaccord Genuity Roger Lambert 020 7523 4619 | Peel Hunt Guy Wiehahn 020 7418 8893 | Redleaf Communications Rebecca Sanders-Hewett Charlie Geller 020 7382 4730 |
Notes to editors:
Charles Stanley was established in 1792 and is one of the oldest firms on the London Stock Exchange.
Charles Stanley Group today provides bespoke wealth management services to private clients, charities and smaller institutions. These are delivered by over 450 professionals located in 24 offices throughout the UK, both direct to client and to intermediaries. Our services include investment portfolio management and financial planning, supported by in-house administration and custody for investment portfolios, SIPPs and ISAs 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
Change | |||
Mar 16 | Mar 15 | since | |
£bn | £bn | Mar 15 | |
Discretionary funds | 9.4 | 9.3 | 1.1% |
Advisory managed funds | 2.6 | 3.0 | (13.3%) |
Total managed funds | 12.0 | 12.3 | (2.4%) |
Advisory dealing funds | 1.7 | 2.1 | (19.0%) |
Execution only funds | 6.8 | 6.9 | (1.4%) |
Total administered funds | 8.5 | 9.0 | (5.5%) |
Total funds under management and administration |
20.5 |
21.3 |
(3.8%) |
FTSE 100 index |
6,175 |
6,773 |
(8.8%) |
WMA balanced |
3,556 |
3,684 |
(3.5%) |
The change since March 2015 is explained in more detail in the tables below:
Discretionary managed | Advisory managed |
Total |
Change | |
£ bn | £ bn | £ bn | % | |
Funds at 1 April 2015 | 9.3 | 3.0 | 12.3 | |
Net inflow/(outflow) | 0.8 | (0.2) | 0.6 | |
Lost clients | (0.4) | (0.1) | (0.5) | |
Net inflow/(outflow) of funds | 0.4 | (0.3) | 0.1 | 0.8% |
Market movement | (0.3) | (0.1) | (0.4) | (3.3%) |
Funds at 31 March 2016 | 9.4 | 2.6 | 12.0 | |
REVENUE
The tables below set out the revenues of the Group as at 31 March 2016 along with the prior year comparatives on a like for like basis.
Year ended 31 March 2016
Investment Management Services | Asset Management | Financial Planning | Charles Stanley Direct | Continuing Operations | Held for Sale | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Fees | |||||||
Investment Management | 58,096 | 2,407 | 1,453 | - | 61,957 | - | 61,957 |
Administration | 17,126 | 2,627 | 4,142 | 3,876 | 27,771 | 2,412 | 30,183 |
Corporate Finance | - | - | - | - | - | 2,569 | 2,569 |
Total fees | 75,222 | 5,034 | 5,595 | 3,876 | 89,728 | 4,981 | 94,709 |
Commission | 44,792 | 521 | 383 | 908 | 46,605 | 177 | 46,782 |
Total | 120,014 | 5,555 | 5,978 | 4,784 | 136,333 | 5,158 | 141,490 |
Year ended 31 March 20151
Investment Management Services | Asset Management | Financial Planning | Charles Stanley Direct | Continuing Operations | Held for Sale | Total | |
£'000 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Fees | |||||||
Investment Management | 55,790 | 1,252 | 1,204 | - | 58,246 | 2 | 58,248 |
Administration | 21,508 | 3,352 | 4,061 | 3,981 | 32,903 | 3,333 | 36,237 |
Corporate Finance | - | - | - | - | - | 4,537 | 4,537 |
Total fees | 77,298 | 4,604 | 5,265 | 3,981 | 91,149 | 7,872 | 9,022 |
Commission | 47,995 | 502 | 390 | 858 | 49,745 | 770 | 50,515 |
Total | 125,293 | 5,106 | 5,655 | 4,839 | 140,894 | 8,642 | 149,537 |
1The revenue figures for the year ended 31 March 2015 have been restated in line with the division classification used in March 2016 to ensure a like for like comparison.
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