Interim Statment

Interim Management Statement - 29th July 2011

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 2011 to 28 July 2011, and includes trading results for the three months ended 30 June 2011.

Charles Stanley Group PLC is pleased to announce that its revenue for the three months to 30 June 2011, the first quarter of its financial year 2011/12, was 7.0% higher, at £30.9 million, than the comparable figure of £28.9 million for the three months to 30 June 2010. In May 2011 the Group acquired Jobson James Financial Services Limited and these figures include one month's income and expenses for that company.

The first three months started well and the Group has seen a good performance in the private client and financial services divisions. A reduction in transaction volumes during the quarter was offset by increases in investment management and administration fees. However, revenue in the Charles Stanley Securities division continues to be depressed by low levels of bond trading and lower retainer fees.

Total client funds under management and administration now stand at over £15 billion - a new record. This reflects an increase during the quarter of 3.7% from £14.50 billion at 31 March 2011 to £15.04 billion at 30 June 2011. Within this figure funds under discretionary management increased by 3.7% from £4.61 billion to £4.78 billion. Over the same period the FTSE 100 Index (June 2011: 5,946; March 2011: 5,909) and the FTSE APCIMS Balanced Portfolio Index (June 2011: 3,006; March 2011: 2,985) remained virtually unchanged. We are particularly pleased at maintaining an annualised organic growth rate of 8.4% in managed funds during the quarter (2011: 7.2%).

While it is difficult to see very far ahead, the Group has made a good start to the current financial year and business continues at good overall levels.

Sir David Howard Bt