AGM 2012 cultivating stability & growth AGM 2012 Sir Martin - - PowerPoint PPT Presentation

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AGM 2012 cultivating stability & growth AGM 2012 Sir Martin - - PowerPoint PPT Presentation

Nov 26, 2023 216 likes •572 views

AGM 2012 cultivating stability & growth AGM 2012 Sir Martin Jacomb Chairman 2 AGM 19 June 2012 business presentation Gavin Oldham Chief Executive Richard Stone Finance Director 3 AGM 19 June 2012 agenda The business

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AGM 2012

cultivating stability & growth

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AGM – 19 June 2012

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AGM 2012

Sir Martin Jacomb Chairman

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business presentation

Gavin Oldham Chief Executive Richard Stone Finance Director

AGM – 19 June 2012

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agenda

  • The business – a one page summary
  • The business foundations
  • The business model
  • The market & its impact
  • 2011 financial performance
  • Future growth drivers

AGM – 19 June 2012

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AGM – 19 June 2012

the business – a one page summary

  • Share plc traded on AIM (SHRE)
  • Parent company of The Share Centre

Limited, Sharefunds Limited and Sharemark

  • Principal business (93% of revenues) –

retail execution-only stockbroking

  • Largest independent publicly quoted

execution-only stockbroker

  • The Share Centre founded in 1990
  • Over 48,000 customer shareholders
  • c. 275,000 accounts for c. 220,000

customers

  • c. £1.5bn of assets under administration
  • 150 employees – IIP accredited
  • Over 80% of transactions undertaken
  • nline – one low-cost physical location
  • Revenue model split between dealing

commission, fees and interest income

  • Gaining market share of revenues

relative to peers*

  • Profitable throughout the last two bear

markets

* The peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, NatWest Stockbrokers (RBS), Saga Personal Finance, Selftrade and TD Waterhouse Investor Services Europe

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AGM – 19 June 2012

the business foundations

Vision To be an independent retail financial services provider of a size to merit inclusion in the FTSE 350 Values

Respect for

  • thers

Empowerment Long term stability Enterprise Clarity

Founding principles

Society is better served by a close interaction between consumer, employee and shareholder Individual aspiration should include nurturing a store of wealth in order to provide personal economic freedom for one’s own, and future, generations

Purpose To enable more people to enjoy straightforward investing

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AGM – 19 June 2012

the business model - award winning service

  • Highest overall client satisfaction award – Investment Trends
  • Best Online Stockbroker – Financial Times and Investors Chronicle
  • Best Online ISA Provider – MoneyAM
  • Best Small Cap Broker – Shares Magazine (3rd year running)

All in 2011

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the market and its impact

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AGM – 19 June 2012

Online XO Trades FTSE 100 2 4 6 8 10 12 14 2006 2007 2008 2009 2010 2011 millions 7000 6000 5000 4000 3000 2000 1000

Source: ComPeer

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industry overview: trades

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AGM – 19 June 2012 Source: ComPeer

11,436,685 597,441 1,449,283 2,291,162 440,367

XO Trades in 2011 by Instrument Type

UK Cash Market CFDs Spreadbets Collectives Overseas Exchanges

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industry overview: assets

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AGM – 19 June 2012 Source: ComPeer

10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

XO Assets (£m)

XO Assets - Actual XO Assets - Following Growth of FTSE APCIMS Balanced Index

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industry overview: accounts

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AGM – 19 June 2012 Source: ComPeer

500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 Q1 03 Q3 03 Q1 04 Q3 04 Q1 05 Q3 05 Q1 06 Q3 06 Q1 07 Q3 07 Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11

XO Nominee Accounts

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industry overview: revenue

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AGM – 19 June 2012 Source: ComPeer

100 200 300 400 500

2006 2007 2008 2009 2010 2011 172 176 166 223 222 211 49 60 62 78 106 119 72 89 113 84 71 91 9 12 33 41 44 35 39 43 XO Revenue (£m) Commission & Brokerage Custody & Admin Fees Net Interest FX Margin Other Revenue * Prior to 2010, FX Margin is included within Net Interest

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2011 financial performance

Richard Stone Finance Director

AGM – 19 June 2012

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2011 highlights

AGM – 19 June 2012

  • Underlying revenues grew 7% to £14.3m
  • Underlying operating profit grew 43% to £1.6m
  • Earnings per share 0.9 pence
  • Final dividend proposed increased 20% to 0.36 pence
  • Net assets £16.1m – 11 pence per share
  • Capital adequacy – 6x requirements and no debt
  • 2011 Group comparatives will be amended to reflect £208,000

FSCS Interim Levy

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2011 key messages

  • Two contrasting half years

– H1: high volumes – H2: weaker volumes, increasing market uncertainty

  • First year without IRFP (ended 1 November 2010)
  • Continued growth in market share

AGM – 19 June 2012

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40% 37% 23% Commission Fees Interest 40% 46% 14%

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2011 financial results

AGM – 19 June 2012

Revenues

2010 2011

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Commission Fees Interest

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2011 financial results

AGM – 19 June 2012

Revenues – compared to the peer group

Share plc Peer Group* Other 62% 16% 15% 7% 46% 14% 40%

* The peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, NatWest Stockbrokers (RBS), Saga Personal Finance, Selftrade and TD Waterhouse Investor Services Europe

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4 6 8 10 12 14 16 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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2011 financial results

AGM – 19 June 2012

Revenues – 10 year track record (excluding interest rate policy) 8% CAGR

£m

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2011 financial results

AGM – 19 June 2012

Revenue growth

£000s Commission Fees Interest

2008 3,194 4,638 4,141 2009 5,440 4,651 4,037 2010 6,109 5,830 3,652 2011 5,671 6,592 1,992

57% growth in 3 years

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2011 financial results

AGM – 19 June 2012

Revenue growth – market share (excluding interest rate policy)

4.00% 4.50% 5.00% 5.50% 6.00% 6.50% Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11

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2011 financial results

Costs

Marketing Direct Other Staff 51% 17% 9% 23%

AGM – 19 June 2012

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0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2006 2007 2008 2009 2010 2011

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2011 financial results

AGM – 19 June 2012

Operating profit

£m

Operating Profit IRFP

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2011 financial results

Dividend

pence per share

0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

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AGM – 19 June 2012

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2011 financial results

Balance sheet

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2000 4000 6000 8000 10000 12000 14000 16000 18000 2010 2011

Other Investments Cash £000s

AGM – 19 June 2012

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AGM – 19 June 2012

future growth drivers

Gavin Oldham Chief Executive

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industry overview: revenue

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AGM – 19 June 2012 Source: ComPeer

100 200 300 400 500

2006 2007 2008 2009 2010 2011 172 176 166 223 222 211 49 60 62 78 106 119 72 89 113 84 71 91 9 12 33 41 44 35 39 43 XO Revenue (£m) Commission & Brokerage Custody & Admin Fees Net Interest FX Margin Other Revenue * Prior to 2010, FX Margin is included within Net Interest

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AGM – 19 June 2012

future growth drivers

  • Growth market for self-select services for personal investors driven by:

– Value and regulation – Increased need to save and make own arrangements – Customer service and independence

  • Service development

– New distribution channels (eg mobile) – Product development (eg flat fee ISA) – Website and corporate gateways

  • Scalable business model

– Revenue growth leading to significant margin expansion – Infrastructure already established and proven

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AGM – 19 June 2012

new distribution channel: mobile dealing

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AGM – 19 June 2012

trading in Share plc shares

  • Markets traded:

– AIM: main quotation – Sharemark: operated by The Share Centre

  • Actively traded since 2000
  • Employee share scheme requirements bought in secondary

market

  • Substantial benefit for customer shareholders: 30% rebate on
  • nline dealing commissions makes The Share Centre’s effective

frequent trader commission just £5.25 per transaction

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AGM – 19 June 2012

summary and outlook

  • Independent publicly quoted retail stockbroker
  • Scalable business model
  • Award winning customer service
  • Differentiated from our peers
  • Experienced management
  • Robust stockmarket values expected in 2012
  • Growth drivers supporting long term revenue growth and

margin expansion

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AGM business

Sir Martin Jacomb Chairman

AGM – 19 June 2012

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AGM resolutions

1. Report & financial statements for y/e 31 December 2011 2. Directors’ remuneration report for y/e 31 December 2011 3. Final dividend for y/e 31 December 2011 4. Re-elect Richard Ian Tolkien as director 5. Re-elect Richard William Stone as director 6. Re-elect Sir Martin Wakefield Jacomb as director 7. Elect Francesca Eva Ecsery as director 8. Re-appoint Deloitte LLP as auditors 9. Authorise directors to allot shares (section 551)

  • 10. Disapply section 561 Companies Act 2006

AGM – 19 June 2012

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This presentation does not constitute investment advice and should not be relied upon for investment decisions. The information in this presentation is not an invitation, inducement or other solicitation for the purchase or sale of any investment. It was obtained from sources believed to be reliable but its accuracy or completeness cannot be

  • guaranteed. Any opinions expressed are given in good faith but are

subject to change without notice.

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www.shareplc.com

thank you