Pre-close Trading Statement

RNS Number : 8974M

Evolution Group PLC

06 February 2009

 



Embargoed until 07.00: 6 February 2009

The Evolution Group Plc

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

Pre-close Trading Update 

Evolution Group, the listed investment bank and private client investment management group, today issues its pre-close trading update for the financial year ending 31 December 2008.

Group and divisional performance 

The Group's profit1 performance in 2008 is in line with market expectations and the outlook remains unchanged from that provided in our Interim Management Statement on 13 November 2008.

The Group intends to issue its results for the 12 months to 31 December 2008 on 8 April 2009 and will circulate its Annual Report and Accounts to shareholders on that date. The Group does not intend to issue a preliminary results announcement. 

Update on acquisition of Singer and Friedlander Investment Management ("SFIM") team

As announced on 21 October 2008, Williams de Broë2 reached agreement with the administrators of Kaupthing Singer & Friedlander Limited (in administration) ("KSF") and certain subsidiaries of KSF to acquire the investment management team of SFIM.

The SFIM team was successfully integrated into Williams de Broe in January 2009. We have been delighted with the professionalism and quality of our new colleagues and clients.

The total value of client assets transferred was £1.1bn, significantly above our initial expectations and we continue to believe this acquisition will be accretive in 2009.

Outlook

2009 will continue to be a year of much uncertainty and will present significant challenges to the financial sector. We are pleased to report that annualised trading across the Group based on January has been above 2009 consensus estimates. Revenues and operating profits have been earned from our three core recurring revenue streams, notably investment management, equities and fixed income. These have all performed strongly in January. We are conscious that January may not be representative of 2009 as a whole, however, the year has started well, and the Group will, as ever, continue to reduce unproductive costs.

Financial position

The Group remains extremely well capitalised with £117m in cash at 31 December 2008 and no debt across the Group. We continue to position the Group as a strongly financed, independent counterparty of choice for our clients.

Notes

1 As represented by 'adjusted profit before tax' defined on page 14 of the 2007 Annual Report.

2The results of Williams de Broë are defined as those arising from Williams de Broë Limited ("WdB"), 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 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.  

                -Ends-

For further information, please contact:

The Evolution Group Plc Alex Snow, Chief Executive Officer	020 7071 4300
Bell Pottinger Corporate and Financial Charles Cook Mike Davies	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 Official List in 2003 and now has a market capitalisation of over £200million.

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 70 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.

Evolution Securities China Limited is a specialist Chinese investment banking business with offices in London, Hong Kong and Shanghai. It offers UK based institutional clients research and trading in listed Chinese stocks and provides Chinese companies access to the markets in London and Hong Kong. Evolution Securities China Limited is authorised and regulated by the Financial Services Authority.

 

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