Interim Management Statement

RNS Number : 0827M

Evolution Group PLC

18 May 2010

 



Embargoed until 7.00am                                                                                                                                                                  18 May 2010

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 presents its first Interim Management Statement for the financial year ending 31 December 2010, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This relates to the period from 1 January 2010 to today's date.

Group performance

In line with the announcement of our Preliminary Results on 25 March 2010, the Group continues to develop across all its activities.  Group total income and operating profitability are ahead of the comparative period in 2009 despite some extremely challenging market conditions experienced in the year to date.

Private Client¹                                   

Profitability in our Private Client division continues to grow significantly, driven by ongoing growth in assets under management and margin improvement.  Total assets under management have grown by 6% from December 2009 to £5.5bn, with net new fund inflows of £133m in the first quarter (Q1 09 £85m).

The new Chief Executive Officer, Philip Howell, joined Williams de Broë in March 2010. 

Investment Banking²

We have continued to make good progress in the development of our Investment Banking division. We continue to hire selectively across both our institutional and corporate businesses to build on the qualitative transformations which began in 2009 with the strategic expansion of our institutional equities and fixed income businesses.

Despite some of the most volatile trading conditions in financial markets since the depths of the recent credit crisis impacting market making activities relative to the same period in 2009, overall performance has held up well.  Secondary market equity sales commissions continue to grow reflecting the quality of our research, sales and trading.

During the period we have acted on five transactions for our corporate clients (Q1 09:four transactions) including the IPO of EMIS Group plc, and are working on an increasing number of high quality mandates.

We have been approved as broker to nine new corporate clients so far this year.

In fixed income, the breadth of product coverage developed in 2009 has ensured that revenues continue in line with 2010 market expectations, despite the impact of increasingly severe periods of market volatility.  We have continued to make key hires within our debt capital markets team where we see increasing opportunities to marry our product and client distribution strengths to provide debt funding solutions to corporate clients.

Financial position

The strength of our balance sheet has been maintained by continuing to be vigilant in controlling our cost base whilst investing in our businesses. There have been no material events or transactions affecting the Group.

Outlook

The recent financial market turbulence is a reminder of how the short term uncertainties stemming from the ongoing unwinding of the global structural imbalances may continue to provide challenging trading conditions for some time. The group is confident, however, that its growth plans remain on track.

Notes

¹The results of Private Client are defined as those arising from Williams de Broë Limited, Williams de Broë Management Company Limited and from WDB Capital Limited, including the consolidated results of the WDB Capital UK Equity Fund.

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

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
Pelham Bell Pottinger Emma Kent Victoria Geoghegan	020 7861 3232

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 now has a market capitalisation of over £240 million.

Evolution Securities Limited is a leading investment bank focused on UK and pan European 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 75 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 retail investment managers, with offices in Bath, Birmingham, Bournemouth, Edinburgh, Exeter, Guildford and London. Williams de Broë is authorised and regulated by the Financial Services Authority.

 

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