Interim Management Statement

RNS Number : 1030I

Walker Crips Group plc

20 July 2012

 



Walker Crips Group plc 

Interim Management Statement

Walker Crips Group plc ("WCG" or the "Group"), the integrated financial services group, is issuing an Interim Management Statement to coincide with its Annual General Meeting which is taking place today, 20 July 2012, at 11.00 am at Armourers' Hall, 81 Coleman Street, London EC2R 5BJ. The statement relates to the trading quarter ended 30 June 2012 (the "Quarter") unless otherwise stated.

On the 12 April 2012 the Group successfully completed the disposal of its fund management subsidiary Walker Crips Asset Managers Ltd ("WCAM") for a consideration of £12.7 million, realising a profit on disposal of £10.4 million. Following this disposal, the Group consists of investment, wealth and pension management and corporate finance businesses (the "Ongoing Group").

Also during the Quarter, Walker Crips Stockbrokers expanded its team with the recruitment of six investment managers from a competitor in an agreed process which should ensure a swift transfer of both the investment managers and their clients.

In continuing difficult market conditions, Ongoing Group net revenue over the Quarter decreased by 5% to £2.4 million compared with the £2.5 million achieved in the same quarter last year. Traditional stockbroking commission remained under pressure over the Quarter; however, revenues generated by our structured investments team (WCSI) grew strongly in the Quarter helping to offset some of this weakness.

WCAM was part of the Group for just 12 days of the Quarter during which time its net revenue contribution was £0.2 million, compared to £1.25 million in the full quarter last year. As a result overall Group net revenue in the Quarter fell by 31%.

The changing relative strengths of the revenue streams referred to above, has led to an increase in the Group's proportion of non broking income to 68.3% (Year ended 31 March 2012: 60.3%).

The Group remains in a strong financial position following receipt of the WCAM disposal proceeds. Whilst the Board's immediate priority is to ensure that its ongoing growth strategy can be delivered, it has concluded that, in addition to the recently announced special dividend of 4.5p per share which is being paid on 3rd August 2012, a further special dividend of 3p per share should be paid along with any interim dividend it considers appropriate in light of the results for the first half of the current year.

Although prevailing trading conditions remain weak, with continued uncertainty emanating from the Eurozone, the Board believes that there are opportunities for WCG to develop current and new products and to grow over the medium term.

Enquiries:

 

Walker Crips Group Plc	Tel: [phone]
Rodney FitzGerald, Chief Executive
Altium	Tel: [phone]
Tim Richardson / Katherine Hobbs

20 July 2012

 

END

 

 

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