Interim Management Statement

RNS Number : 6839U

Evolution Group PLC

19 May 2008

 



19 May 2008

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 ("IMS") for the financial year ending 31 December 2008, as required by the UK Listing Authority's Disclosure and Transparency Rule 4.3. This relates to the period from 1 January 2008 to today's date.

Group performance 

As indicated in our Preliminary Results announcement on 19 March 2008, the Group continues to trade profitably and develop in line with our plans. 

We continue to see strong recurring income from our Evolution Securities'1 secondary franchise with market shares being maintained across the FTSE sectors and our number one position on the AIM market of the LSE retained for agency and total business. 

We have executed some notable IPO's this year and our primary business is more active than it has been for some time. In addition we have been appointed to act as broker to ten new corporate clients so far this year. We remain confident for the remainder of 2008.  

Williams de Broe2 has seen continued momentum in new intermediary fund sales, with net inflows of £167m in the first quarter (Q1 07: £135m), an increase of 24%. The recent office opening in Edinburgh provides an additional significant growth opportunity for this business and we have received a very positive reaction from our staff and new clients. We see continued significant growth in assets under management in the medium term.

Evolutions Securities China3 has seen a strong performance from its Hong Kong operations. Performance in its London based primary franchise is mixed.

Financial position

The Group's financial position continues to be strong and save for the opening of the new Williams de Broe Edinburgh office in April, disclosed above, there have been no material events or transactions affecting the Group. The maintenance of a strong and liquid balance sheet continues to be core Group policy. This provides the necessary financial strength and flexibility in times of market uncertainty and enables us to grasp opportunities should they present themselves. The strength of our balance sheet has been maintained through the effective management of working capital in trading portfolio assets and net trade receivables. In addition, we have taken the appropriate decisions to adjust our cost base in the light of the current market conditions.

Outlook

The Group continues to be well positioned in the current market environment. Evolution Securities and Evolution Securities China continue to operate in line with our expectations and Williams de Broe is well positioned for significant growth in assets under management and the resultant revenue gains this will provide. 

Notes

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

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.

3The results of Evolution Securities China are defined as those arising from Evolution Securities China Limited ("ESCL") and its subsidiary Evolution Watterson Securities Limited ("EWSL").

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 Tony Lee, Company Secretary	020 7071 4300
Bell Pottinger Corporate and Financial Charles Cook Mike Davis	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 £230 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 80 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.

 

END

 

 

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