Interim Management Statement

RNS Number : 3207M

Rensburg Sheppards plc

28 January 2009

 

Rensburg Sheppards plc

Interim Management Statement 

Rensburg Sheppards plc, the investment led wealth management group, today publishes its Interim Management Statement for the period from 1 October 2008 to 27 January 2009, which includes information on revenues and funds under management for the three months and nine months ended 31 December 2008.

The third quarter of the group's financial year saw a further marked deterioration in global financial markets, centred on the well publicised difficulties experienced across the banking sector and the adverse consequences of the ensuing credit squeeze for the wider economy.

In recognising the very sharp contrast in operating environments over the periods, it was reassuring to see net revenue* for the third quarter of the current financial year decline by just 11.1% from that achieved by the group in the corresponding quarter of 2007. During the current difficult times, the importance to clients of high quality, independent investment management advice is at a peak: we remain firmly focussed on providing this, which will reinforce the historically strong client relationships central to the group's success.  

The table below analyses net revenue between the two business segments of the group:

	Three months ended 31 Dec 2008 £’000	Three months ended 31 Dec 2007 £’000	Change %	Nine months ended 31 Dec 2008 £’000	Nine months ended 31 Dec 2007 £’000	Change %
Investment management
- Fees	11,983	14,451	-17.1	38,579	43,612	-11.5
- Commissions	5,207	5,594	-6.9	16,255	17,930	-9.3
- Interest turn	4,752	3,284	44.7	12,341	9,146	34.9
- Trail commission	1,396	1,468	-4.9	4,240	4,279	-0.9
- Other income	1,384	1,826	-24.2	5,226	5,730	-8.8
Sub-total	24,722	26,623	-7.1	76,641	80,697	-5.0
Fund management
- Fees	2,010	3,094	-35.0	6,991	9,323	-25.0
- Profit on sale of units of unit trusts	280	658	-57.4	904	1,752	-48.4
- Other income	19	21	-9.5	35	69	-49.3
Sub-total	2,309	3,773	-38.8	7,930	11,144	-28.8
Total net revenue	27,031	30,396	-11.1	84,571	91,841	-7.9

* Revenue net of fees and commissions payable to introducers

During the three months ended 31 December 2008, the group's total funds under management declined by 5.4%, compared with falls of 4.7% and 11.0% in the FTSE APCIMS Private Investors Balanced and FTSE All-Share indices respectively. 

An analysis of the group's funds under management by business segment is given below:

	31 Dec 2008 £bn	30 Sept 2008 £bn	Change since 30 Sept %	31 Mar 2008 £bn
Investment management:	9.59	10.20	-6.0	11.48
- Discretionary	6.84	7.25	-5.7	8.04
- Non-discretionary	2.75	2.95	-6.8	3.44
Fund management:	1.24	1.25	-0.8	1.47
- Retail units	0.89	0.87	2.3	1.08
- Segregated mandate	0.35	0.38	-7.9	0.39
Total funds under management	10.83	11.45	-5.4	12.95
-----------------------------------	----------------	--------------	------------	-----------
FTSE APCIMS Balanced	2,416.48	2,535.09	-4.7	2,801.75
FTSE All-Share	2,209.29	2,483.67	-11.0	2,927.05

The group continues to be soundly financed and cash generative, with cash plus cash equivalents less subordinated debt totalling £27.3 million as at 31 December 2008. This leaves the group well placed to take advantage of the potential opportunities that may arise from the current environment.   

The first few weeks of 2009 have seen continuing volatility and further declines in the leading financial market indices.  Whilst fully acknowledging the prevailing uncertainty, the board remains satisfied with the group's longer-term prospects.

For further information, please contact:

Steve Elliott, Chief Executive                      Tel: [phone]

Jonathan Wragg, Finance Director              Tel: [phone]

Rensburg Sheppards plc

Nick Lyon / James White                             Tel: [phone]

Hudson Sandler

 

END

 

 

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