Interim Management Statement

RNS Number : 5561B

Evolution Group PLC

29 October 2009

 



Embargoed until 7.00am                                                                                                                                  29 October 2009

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 second Interim Management Statement ("IMS") for the financial year ending 31 December 2009, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This relates to the period from 1 July 2009 to today's date.

Group performance 

The Group is experiencing strong trading across all its businesses and 2009 full year profit is expected to exceed current market forecasts.

Investment Banking 

Corporate activity has increased notably and revenues for the second half will be at least double the first half. Our improving secondary market share, broad research and increasing distribution strengths are leading to a much improved pipeline and growing corporate client list. 

Fixed Income continues to generate strong revenues across our expanding range of product offering, which now includes Debt Capital Markets.

Equity revenues are experiencing strong growth, driven in particular by commission income and are at record quarterly levels.

We are hiring key staff in both the UK and internationally, to exploit revenue growth opportunities across all our businesses. Year end headcount for the investment banking division is expected to be 10% higher than reported at the half year. 

The number of institutional clients we deal with in both Fixed Income and Equities is growing at a significant rate. Year to date, we have established in excess of 300 new client relationships across both businesses.

Private Client Investment Management 

Profitability continues to grow with funds under management and administration reaching a record level of £5.0billion at 30th September, up 19% from the £4.2billion reported at 30th June 2009. Net fund inflows exceeded £100 million in the third quarter.

Financial position

The Group continues to have a strong and highly liquid balance sheet, giving us great flexibility in the current market. 

Outlook

Given the successful results to date from investments made over the last 12 months and our growing business pipeline, the Group is highly confident that it can continue the momentum in profit growth into 2010 and beyond.

Notes

1The results of Investment Banking are defined as those arising from Evolution Securities Limited and its subsidiary Evolution Securities (US) Inc. .

2The results of Private Client Investment Management 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.

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.

 -Ends-

For further information, please contact:

The Evolution Group Plc Alex Snow, Chief Executive Officer Andrew Westenberger, Finance Director	020 7071 4300
Bell Pottinger Corporate and Financial Charles Cook 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 and re-entered the FTSE 250 in 2009, the Group now has a market capitalisation of over £340 million.

Evolution Securities Limited is a leading investment bank focused on mid-cap UK 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 a leading private client investment manager, with offices in Bath, Birmingham, Bournemouth,  Edinburgh, Exeter, Guildford and London. Williams de Broë is authorised and regulated by the Financial Services Authority.

 

END

 

 

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