Interim Management Statement

RNS Number : 6953G

Evolution Group PLC

17 May 2011

 



Embargoed until 7.00am                                                                                                                                                                  17 May 2011

The Evolution Group Plc

(the "Evolution Group", the "Group", the "Company")

Interim Management Statement

Evolution Group, the listed investment bank and private client investment management group, today announces its first Interim Management Statement for the financial year ending 31 December 2011, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This relates to the period from 1 January 2011 to today's date.

Group performance

Despite ongoing tough market conditions, the Group was profitable in the first quarter of 2011. Group total income was in line with Q4 2010 levels, whilst operating expense run rates were reduced significantly.

Private Clients¹                                

The strong growth of Williams de Broë continued, with Funds under Management, income and profits all increasing on Q1 2010. 

Total Funds under Management have grown to £6.2bn at the end of April, up 7% from £5.8bn at 31 December 2010. This compares to an increase of 0.7% in the FTSE APCIMS balanced and All Share indices over the same period. Net organic growth since December 2010 of £314m has been exceptional, and in addition, acquired inflows contributed significantly, adding a further 1 % in the period (3.1% annualised) to overall Funds growth.

Investment Banking²

To date in 2011, Evolution Securities Limited ("ESL") has acted on seven capital market transactions, against five in the comparable period in 2010, although the lack of large transactions closing has resulted in Q1 2011 corporate income being lower than Q4 2010.

During the period, ESL has also been appointed as broker to nine new corporate clients, the same as in the comparable period in 2010. Additionally, the average size of its client list has continued to improve.

The pipeline of current corporate business remains strong, including four IPOs, further retail bond mandates, secondary equity raisings and a growing number of debt and equity advisory opportunities. 

Secondary market equity and fixed income commissions increased from Q4 2010 run rates in Q1 2011, which coupled with significant reductions to the business's operating expense run rate, resulted in an improved result for the business as a whole compared to the second half of 2010.

Financial position

The strength of the Group's balance sheet has been maintained by continuing to manage operating expenses to ensure profitability. There have been no material events or transactions affecting the Group.

Notes

¹The results of Private Clients are defined as those arising from Williams de Broë Limited, WDB Asset Management Limited and from WDB AssetMaster Management Company Limited.

²The results of Investment Banking are defined as those arising from Evolution Securities Limited, its subsidiary Evolution Securities (US) Inc. ("ESUS") and Darwin Strategic Limited ("Darwin").

Forward looking statements

This interim management statement may contain forward-looking statements with respect to the financial condition, results, operations and businesses of The Evolution Group Plc.  Such statements and forecasts involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by forward-looking statements and forecasts.  Forward-looking statements and forecasts are based on the Directors' current view and information known to them at the date of this statement.  The Directors do not make any undertaking to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  Nothing in this interim management statement should be construed as a profit forecast.

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For further information, please contact:

The Evolution Group Plc Alex Snow, Chief Executive Officer Andrew Westenberger, Finance Director	020 7071 4300
Attila Consultants	020 7776 8825
Charles Cook, Senior Partner

Notes to Editors:

 

The Evolution Group Plc

The Evolution Group is the holding company of Evolution Securities Limited, Williams de Broë Limited and Evolution Securities China Limited. Founded in April 2001 and originally listed on AIM, the Evolution Group joined the LSE Official List in 2003; the Group currently has a market capitalisation of approximately £160 million.

Evolution Securities Limited is a leading investment bank focused on UK mid cap public companies. It provides a full range of investment banking services including equity research, institutional sales and trading, market making and corporate finance advice. Evolution Securities Limited has over 80 retained corporate clients. It is authorised and regulated by the Financial Services Authority.

Williams de Broë Limited is one of the UK's leading and fastest growing private client investment managers, with offices in Bath, Birmingham, Bournemouth, Edinburgh, Exeter, Guildford and London. Williams de Broë Limited is authorised and regulated by the Financial Services Authority.

 

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