Trading Statement

Evolution Group PLC
27 October 2006



The Evolution Group Plc

Embargoed until: 27 October 2006 07.00

                            The Evolution Group Plc
                                 Trading Update

The Evolution Group Plc ("Evolution" or the "Group"), the investment bank and
retail fund management group, today announces a trading update.


Acquisition update

The acquisition of Williams de Broe was completed on 3 June 2006. Since the
Group reported its interim results in September 2006 it has largely completed
the integration of Williams de Broe's businesses. The integration of the
institutional securities business into Evolution Securities Limited was
completed on 24 July 2006 on time and to plan.

The combination of the two private client businesses was completed on 6 October
2006 with the transfer of client funds under management onto Christows'
operating platform. At the same time Christows Limited was re-named and the
private client fund management business is now branded Williams de Broe Limited.

The process surrounding the acquisition and accounting for Williams de Broe,
detailed extensively in the Interim Report, remains on track. The Group expects
to conclude this process during this final quarter and will be in a position to
provide full acquisition accounts within the Annual Report for the year ending
31 December 2006 to be published in April 2007.

As a result of the phased close-down process planned for the period from June to
September 2006, when the two businesses overlapped and operating platforms were
duplicated, additional operating costs of approximately £5 million have been
incurred. These will not recur in 2007. In addition, the restructuring and
resultant redundancy programme, combined with the on-going effort required to
resolve the accounting and reconciliation issues, before performing an orderly
close down of the shell companies, means the Group will incur exceptional costs
of some £5 million in 2006.


Institutional securities

The acquisition of Williams de Broe has progressed well in terms of both the
equities and fixed income areas. Research and sales have benefited from the
extremely good fit, better leadership, and a significantly better trading
platform. Research based sales commissions are significantly ahead of the prior
year. Volumes of transactions in both our retail and institutional market
platforms are significantly ahead of the prior year in all indices, with a
particularly strong showing in our penetration across the larger capitalised
FTSE 100 and 250 stocks and pan European clients. During the remainder of 2006
and 2007 Evolution will continue to strengthen its secondary market platform
whilst repositioning its corporate finance department towards more advisory
work, with a strong focus on servicing our existing clients.

However, the recent negative change in market sentiment towards IPOs and towards
the AIM market in particular, has resulted in a reduction in forecast corporate
finance revenue for the final quarter of 2006. The Group recognises that AIM is
a market suffering from some indigestion, due in part to the constraints of
limited shareholder access and capacity. This may lead to opportunities and some
consolidation. Evolution intends to be ready to take advantage of this and
support the franchise it has built over the last five years.

As a result of the significant improvement in the secondary business, primary
corporate finance transactions will account for a lower percentage of Group
income next year. The Group's historic over-reliance on primary income, which at
times has been over 80% of total Group income, is not seen as a sustainable
business model.
The Board recognised this changing business model more than twelve months ago,
and agreed a strategy to address it. The recruitment of Andrew Umbers to run
Evolution Securities was part of this change. His history and credentials are
based on successfully developing secondary franchises at BZW and then at CSFB.
The successful acquisition of Williams de Broe was the culmination of months of
planning, and a manifestation of this strategy. We have further strengthened our
secondary and primary businesses with high quality recruitment. This process
will continue.

The Group has also strengthened the Board with the appointment of Mark Nicholls
as a non-executive director. Mark ran the corporate finance department at SG
Warburg for 10 years. It is the intention to strengthen the Board further.

We aim to be the UK's leading independent securities firm. We are a company with
real strategic goals and ambitions.

Private client fund management

The progress made to date in integrating and re-branding the private client fund
management business to Williams de Broe Limited has been extremely encouraging.
The combined private client business now trades from six branch offices and
begins the fourth quarter with assets of approximately £2.0 billion under
management. Capitalising on this progress and by continuing to invest in this
franchise and brand throughout the remainder of 2006 and 2007, the Board expects
significant further growth of client assets by the end of 2007 and as a result a
significant uplift in profitability.

Overall impact on Group results

The Group remains very well placed for the future. However, due to the presence
of significant non-recurring costs and the expected reduction in corporate
finance revenues, the Group expects to achieve a clean profit before tax in 2006
of approximately £25m.

When there are so many changes affecting our industry and ourselves, we are
extremely mindful of our balance sheet. We want to be able to take advantage of
the strategic changes affecting our industries and strengthen our business
franchises at the same time. We will, however, via market purchases, distribute
capital to the extent that our business plans permit and our reserves allow.

In the meantime, the Group has two very strong core businesses both of which
have well defined strategies and real direction. The Group's business model is
changing to be one of stability and balance. This is hugely important to our
shareholders, our clients and to our staff. The Board remains confident about
2007.

Martin Gray

Chairman
                                      ENDS




For more information please contact:

The Evolution Group Plc                                Tel: [phone]
Alex Snow, Chief Executive Officer

Bell Pottinger Corporate and Financial                 Tel: [phone]
Charles Cook
Sarah Hilyer

Notes to Editors:

The Evolution Group Plc

The Evolution Group is the holding company of Evolution Securities Limited,
Williams de Broe Limited and Evolution Securities China Limited. Founded in
April 2001 and originally listed on the AIM, the Evolution Group joined the
Official List in 2003 and now has a market capitalisation of over £310 million.

Evolution Securities Limited aims to be the leading investment bank advising
small and mid-cap UK public companies. It has approximately 100 retained
corporate clients, to whom it provides equity research, institutional sales and
trading, market making and corporate finance advice. Evolution Securities
Limited is authorised and regulated by the Financial Services Authority. In
addition, it operates a US broker-dealer, Evolution Securities (US) Inc., which
is registered with the National Association of Securities Dealers and regulated
by the Securities Exchange Commission through which it brings US institutional
investors access to its UK based corporate clients.

Williams de Broe Limited is a leading private client stockbroker and fund
manager, with offices in Bath, Birmingham, Bournemouth, Exeter, Guildford and
London. Williams de Broe is authorised and regulated by the Financial Services
Authority.

Evolution Securities China Limited ("ESCL") is a specialist investment banking
and securities firm dedicated to offering equity research, institutional sales
and sales trading to a broad base of professional portfolio investors, as well
as Equity Capital Markets and Corporate Finance services, primarily to Chinese
and Asian corporations.

ESCL is headquartered in London with additional offices in Shanghai and Hong
Kong, under the regulatory authority of the FSA and SFC.



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