Interim Management Statement

RNS Number : 4593S

Evolution Group PLC

19 May 2009

 



Embargoed until 7.00am                                                                                                                                  19 May 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 first 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 January 2009 to today's date.

Group performance 

In line with the announcement of our Preliminary Results on 8 April 2009, the Group continues to trade profitably and develop in line with our plans. 

We have made further progress developing the Group and increasing our core recurring revenues.  

We continue to see very strong growth in our fixed income revenues and have hired 20 staff in this area in the period to expand our product and client coverage capabilities. The fixed income business is making an increasing contribution to the performance of Evolution Securities1. 

We have also undertaken a strategic expansion of the securities business with the hire of 45 staff from the former Dresdner Kleinwort securities business, as announced on the 11 May. This move has increased the number of our client facing equities staff by 50% and provides us with a significant growth opportunity in pan European equities. 

Our institutional equities business has made encouraging progress and the recent upturn in market sentiment has benefited secondary trading revenues.

Although the backdrop of weak IPO markets remains, we have added 12 new corporate clients during the period under review.  

Williams de Broe2 has seen continued momentum , with net inflows of £85 million in the first quarter (Q1 08: £167 million).

Financial position

The Group's financial position continues to be strong and save for the strategic expansion of the securities business, disclosed above, there have been no material events or transactions effecting the Group. The maintenance of a strong and liquid balance sheet continues to be core Group policy. 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 continue to be vigilant in controlling our cost base.

Outlook

Financial markets are showing early signs of stabilising.  Despite the economic outlook remaining uncertain we believe that the Group is well placed to deliver its growth plans.  

Appointment of broker

The Evolution Group has appointed Arden Partners plc to act as broker to the Group with immediate effect. Credit Suisse remains sole financial advisor.  

Notes

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

2The results of Williams de Broë 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.

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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 Emma Kent Victoria Geoghegan	020 7861 3232

Arden Partners plc  Fred Walsh Matthew Armitt

020 7398 1651

Notes to Editors:

The Evolution Group Plc

The Evolution Group is the holding company of Evolution Securities Limited and Williams de Broë Limited and has a significant minority holding in 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 £275 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 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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