Source - LSE Regulatory
RNS Number : 4590S
Charles Stanley Group PLC
09 July 2020
 

 

 

9 July 2020

 

 

Charles Stanley Group PLC

("Charles Stanley" or the "Group")

 

Trading update for the three months ended 30 June 2020

 

Charles Stanley, the wealth management services group, is pleased to provide a trading update for the first quarter of its financial year, covering the three months ended 30 June 2020.

 

After the market-driven steep decline in Funds under Management and Administration ("FuMA") at the end of the last financial year, resulting from the global impact of COVID-19, FuMA has recovered well, and Group revenue for the first quarter of the financial year is 1.7% ahead of the same period last year. This increase was driven by both greater trading activity, resulting in higher commission income, and strong progress from the Financial Planning division, which offset the impact of reduced interest income.

 

Trading Update

 

FuMA at 30 June 2020 increased by 11.9% to £22.6 billion over the three months from £20.2 billion as at 31 March 2020. Over the same period the MSCI WMA Private Investor Balances Index rose 10.6%.

 

Group revenue for the quarter rose by 1.7% to £42.2 million (2019: £41.5 million). Fee income increased by 4.1%, primarily reflecting a 35.3% increase in revenue generated by the Financial Planning division, evidencing the benefits of the investment made in that division. Commission income increased by 4.0% due to higher trading volumes. As expected, interest income reduced by 37.5% following cuts to base rates in March 2020.

 

Paul Abberley, Chief Executive Officer of Charles Stanley, said:

 

"The Group has delivered a good trading performance in the first quarter. Our strong capital position has enabled us to take a measured response to the COVID-19 crisis and we have been able to ensure that our clients have continued to receive very high service levels.

 

"The crisis has changed our office working practices and client interaction, accelerating the need for standardisation and digitisation of more processes. As we continue the transformation programme for Charles Stanley, these will be core areas of focus for us throughout the rest of the financial year."

 

 

 

 

Charles Stanley Group PLC LEI: 213800LBSEGKE5MCYC90

 

For further information, please contact: 

 

Charles Stanley

Siobhan Griffiths

Via KTZ Communications

Canaccord Genuity

David Tyrrell

020 7523 4677

Peel Hunt

Andrew Buchanan

020 3597 8680

KTZ Communications

Katie Tzouliadis

020 3178 6378

 

 

Notes to editors:

 

Charles Stanley provides holistic wealth management services to private clients, charities, trusts and institutions. Its origins trace back to 1792 and the Group is one of the oldest firms on the London Stock Exchange. The Group has a national presence, with 26 locations and 850 professionals. Its wealth management services are provided direct to clients and to intermediaries.

Funds under Management and Administration

 

 


Jun 2020

Mar 2020

Jun 2019


£bn

£bn

£bn





Discretionary funds

13.4

12.0

13.5

Advisory managed funds

1.3

1.2

1.5

Total managed funds

14.7

13.2

15.0

Advisory dealing funds

1.1

1.0

1.2

Execution-only funds

6.8

6.0

8.2

Total administered funds

7.9

7.0

9.4





Total FuMA

22.6

20.2

24.4





MSCI WMA Private Investor Balanced Index

1,574

1,423

1,632





 

 

The change in FuMA since 31 March 2020 is explained in more detail in the table below:

 

 


Discretionary managed

Advisory managed

Advisory dealing

Execution-only

 

Total


£bn

£bn

£bn

£bn

£bn







Funds at 1 April 2020

12.0

1.2

1.0

6.0

20.2













New clients

0.1

-

-

-

0.1

Transfers

-

-

-

-

-

Net outflows from existing clients

-

-

-

-

-

Lost clients

(0.1)

-

-

(0.1)

(0.2)













Net inflows/(outflows) of funds

-

-

-

(0.1)

(0.1)













Market movement

1.4

0.1

0.1

0.9

2.5













Funds at 30 June 2020

13.4

1.3

1.1

6.8

22.6







 

 

 



 

Revenue

 

The table below sets out the unaudited revenues of the Group for the quarter ended 30 June 2020 along with the prior year comparatives on a like-for-like basis.

 

Quarter ended 30 June 2020





Investment Management Services

Financial Planning

Charles Stanley Direct

Revenue


£m

£m

£m

£m






Fees

26.7

2.3

1.4

30.4

Commission

 

9.6

-

0.7

10.3

Interest turn

1.2

-

0.3

1.5

Total

37.5

2.3

2.4

42.2






Quarter ended 30 June 2019





Investment Management Services

Financial Planning

Charles Stanley Direct

Revenue


£m

£m

£m

£m






Fees

26.2

1.7

1.3

29.2

Commission

9.5

-

0.4

9.9

Interest turn

1.9

-

0.5

2.4

Total

37.6

1.7

2.2

41.5

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
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