Interim Management Statement

RNS Number : 7289W

Walker Crips Group plc

03 February 2012

 



Walker Crips Group Plc 

Interim Management Statement

Walker Crips Group Plc ("WCG" or the "Group"), the integrated financial services group, is today issuing an Interim Management Statement covering the period from 1 October 2011 to 31 December 2011 (the "Quarter"). The Quarter is the third in WCG's current financial year.

Trading levels during the Quarter remained weak, continuing the trend reported in the Group's Interim Report, as equity market volumes remained relatively low. Group net revenue for the Quarter decreased by 9.8% to £3.39m (Q3 2010: £3.76m).

WCAM, our asset management subsidiary, increased its core primary unit trust and UK based funds under management ("FUM") by 8.1% over the Quarter to £612m at 31 December 2011, with fee revenues correspondingly higher.

However, during the Quarter the last of WCAM's non-core offshore funds (£131m FUM), which are not managed by our highly-rated managers Stephen Bailey and Jan Luthman, took the strategic decision to move their administration in-house and, correspondingly,  overall FUM at 31 December 2011 decreased to £612m (30 September 2011: £698m; 31 December 2010: £753m). These non-core funds contributed less than £66,000 of net fees per quarter.

Non broking income as a proportion of total income over the Quarter was unchanged at 61% (quarter to 30 September 2011: 61%; quarter to 31 December 2010: 53%) as the Group continued to focus on reducing its reliance on volatile commission revenues, which fell by 28.7% to £1.74m (2010: £2.24m) due to more subdued equity markets.

There have been no significant changes to the balance sheet since the half year end on 30 September 2011 and WCG remains in a healthy financial position.

Despite the increase in core FUM and related fee income, the reduction in overall FUM and the continuing difficult trading conditions being experienced generally in the financial sector are likely to result in Group profitability for the year to 31 March 2012 being lower than expectations. However, the WCG Board believes that the Group's diverse product range continues to underpin its profitable resilience to the current challenging environment.

For further information, please contact:

Walker Crips Group Plc	Tel: [phone]
Rodney FitzGerald, Chief Executive
Geri Jacks, Press Contact
Altium	Tel: [phone]
Ben Thorne
Tim Richardson

3 February 2012

 

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