Trading update for the three months ended 30 September 2021

Our trading update for the second quarter of its financial year, covering the three months ended 30 September 2021.

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Trading Update

Total Funds under Management and Administration (“FuMA”) in the quarter rose marginally by 1.1% to £27.4 billion against the prior quarter at £27.1 billion. This compared to a 0.2% increase over the same period in the MSCI WMA Private Investor Balanced Index. FuMA were up by 7.0% against the financial year-end position of £25.6 billion at 31 March 2021. Average FuMA increased by 22.2% over the first half of the financial year to £27.0 billion (H1 2020: £22.1 billion), reflecting buoyant stock markets.

Revenue over the second quarter increased by 15.3% to £46.0 million (Q2 2020: £39.9 million), with increases in fee income of 19.5% and commission income of 3.4% offsetting a significant contraction in interest income of 40%. Revenue over the first half increased by 12.1% to £91.9 million (H1 2020: £82.0 million). Revenue margins over the period decreased by 6.2bps to 68.1bps (H1 2020: 74.3 bps), which reflected lower trading activity and commission income, as well as lower interest rates compared to the same period than a year ago.

Raymond James acquisition update

Update on recommended acquisition by Raymond James UK Wealth Management Holdings Limited (“Raymond James”), a wholly-owned subsidiary of Raymond James Financial, Inc.

As announced by Charles Stanley on 16 September, the requisite majority of shareholders voted in favour of the court-sanctioned scheme of arrangement (the “Scheme”) to effect Raymond James’ recommended cash acquisition of Charles Stanley (the “Acquisition”). The Scheme remains subject to the satisfaction or (where applicable) waiver of remaining conditions, including the FCA having notified Raymond James in writing of its approval of the change of control of Charles Stanley & Co Limited and Myddleton Croft Limited as a result of the Acquisition (or the requisite time period for such approval having elapsed without the FCA having objected to the Acquisition) and the Court sanctioning the Scheme at a sanction hearing, which is expected to be held in the fourth quarter of 2021. Any updates to the expected timetable, including the time and date of the Court hearing to sanction the Scheme once confirmed, will be announced through a Regulatory Information Service.

Notice of Results

The Group’s unaudited interim results for the six months ended 30 September 2021 will be published on 18 November 2021.

Trading update September 2021 Q2 2022

The Group continues to display good momentum across all areas, with growth in revenues from all our divisions.

Paul Abberley, Chief Executive Officer

Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.

Trading update for the three months ended 30 September 2021

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