Charles Stanley : Q3 trading update

23 January 2018

Charles Stanley Group PLC

Trading update for the three months ended 31 December 2017

Charles Stanley Group PLC ("Charles Stanley" or "the Group") today issues a trading updatefor the third quarter ended 31 December 2017.

Total Funds under Management and Administration ("FuMA") at 31 December 2017 were £24.9 billion, representing an increase of 2.5% compared to £24.3 billion at 30 September 2017. This increase was largely driven by market growth, with the FTSE UK Private Investor Balanced Index increasing by 3.6% over the same period.

The growth in total FuMA was supplemented by encouraging inflows to the higher margin discretionary services, partly driven by clients upgrading from advisory services (£0.2 billion) and from new clients (£0.2 billion).

Execution-only funds increased by 3.6% (£0.3 billion) overall with Charles Stanley Direct continuing to outperform, up 6.8% to £2.7 billion during the quarter.

Total Group revenues on a year-to-date basis are up 7.4%, from £104.1 million to £111.8 million. Excluding EBS Management PLC, the pensions administration business which was sold by the Group on 31 May 2017, like-for-like revenues from continuing activities increased by 9.1%, from £102.0 million to £111.3 million.

Paul Abberley, Chief Executive Officer, commented:

"Trading conditions in Q3 were consistent with the performance seen in the first half of the financial year with a continued transition to higher margin fee-based revenues, favourable market conditions and stable cost control".

For further information, please contact:

Charles StanleyJoanne Higginson Public Relations ManagerCanaccord GenuityAndrew Buchanan 020 7523 4661

Peel HuntGuy Wiehahn 020 7418 8893

Redleaf CommunicationsCharlie Geller 020 7382 [e-mail]

Via Redleaf

Notes to editors:

Charles Stanley traces its origins back directly to 1792 and is one of the oldest firms on the London Stock Exchange. Charles Stanley today provides holistic wealth management services to private clients, charities and smaller institutions. These are delivered by over 400 professionals located in 22 offices throughout the UK, both direct to clients and to intermediaries. Our services include investment portfolio management and financial planning, supported by in-house administration to enhance the quality of service provided. In addition, Charles Stanley Direct provides an award winning direct to customer execution-only dealing platform for equities and funds.

FUNDS UNDER MANAGEMENT AND ADMINISTRATION

£bn

Sep 17	Mar 17
£bn	£bn
Discretionary funds	12.6	12.1	11.4
Advisory managed funds	2.1	2.2	2.4
Total managed funds	14.7	14.3	13.8
Advisory dealing funds	1.6	1.7	1.8
Execution only funds	8.6	8.3	8.4
Total administered funds	10.2	10.0	10.2
Total FuMA	24.9	24.3	24.0
FTSE UK Private Investor Balanced Index	4,268	4,119	4,122

Dec 17

The change in managed funds since 30 September 2017 is explained in more detail in the table below:

Discretionary	Advisory
managed	managed	Total
£bn	£bn	£bn
Funds at 1 October 2017	12.1	2.2	14.3
New clients	0.2	-	0.2
Transfers between services	0.2	(0.2)	-
Net outflow from existing clients	(0.3)	-	(0.3)
Net inflow/(outflow) of funds in the period	0.1	(0.2)	(0.1)
Market movement	0.4	0.1	0.5
Funds at 31 December 2017	12.6	2.1	14.7

REVENUE

The table below sets out the revenues of the Group for the quarter ended 31 December 2017 along with the prior year comparatives on a like-for-like basis.

Quarter ended 31 December 2017

Charles	Held
Asset	Financial	Stanley	Core	For
Management	Planning	Direct	Business	Sale1	Total
£m	£m	£m	£m	£m	£m
1.6	1.5	1.1	26.9	-	26.9
0.2	-	0.4	9.8	-	9.8
-	-	0.1	0.6	-	0.6
1.8	1.5	1.6	37.3	-	37.3
Charles	Held
Asset	Financial	Stanley	Core	For
Management	Planning	Direct	Business	Sale1	Total
£m	£m	£m	£m	£m	£m
Fee income	19.6	1.2	1.2	0.5	22.5	0.7	23.2
Commission	11.0	0.2	-	0.5	11.7	-	11.7
Interest income	0.3	-	-	-	0.3	-	0.3
Total	30.9	1.4	1.2	1.0	34.5	0.7	35.2

Investment
Management
Services
£m
Fee income	22.7
Commission	9.2
Interest income	0.5
Total	32.4

Quarter ended 31 December 20162

Investment

Management

Services

£m

1Held For Sale for both financial years represent revenues from EBS Management PLC, which was sold by the Group on 31 May 2017 and was previously reported within the Financial Planning division.

2Revenue figures for the quarter ended 31 December 2016 have been presented in line with the classification of theGroup's four operating divisions used for the quarter ended 31 December 2017 to ensure a like-for-like comparison.

YTD 31 December 2017

Investment

Management

Services

£m

Charles	Held
Asset	Financial	Stanley	Core	For
Management	Planning	Direct	Business	Sale1	Total
£m	£m	£m	£m	£m	£m
4.4	4.4	2.9	78.1	0.5	78.6
0.7	-	1.1	32.1	-	32.1
-	-	0.2	1.1	-	1.1
5.1	4.4	4.2	111.3	0.5	111.8
Investment	Charles	Held
Management	Asset	Financial	Stanley	Core	For
Services	Management	Planning	Direct	Business	Sale1	Total
£m	£m	£m	£m	£m	£m	£m
Fee income	56.6	3.5	3.6	2.0	65.7	2.1	67.8
Commission	33.2	0.5	-	0.9	34.6	-	34.6
Interest income	1.4	-	-	0.3	1.7	-	1.7
Total	91.2	4.0	3.6	3.2	102.0	2.1	104.1

Fee income 66.4

Commission 30.3

Interest income 0.9

Total

97.6

YTD 31 December 20162

1Held For Sale for both financial years represent revenues from EBS Management PLC, which was sold by the Group on 31 May 2017 and was previously reported within the Financial Planning division.

2Revenue figures for the three quarters ended 31 December 2016 have been presented in line with the classification ofthe Group's four operating divisions used for thethree quarters ended 31 December 2017 to ensure a like-for-like comparison.