ANNUAL GENERAL MEETING 2015 1 1 AGM - 10 June 2015 AGM 2015 2 - - PowerPoint PPT Presentation

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AGM - 10 June 2015

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ANNUAL GENERAL MEETING 2015

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AGM 2015

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AGENDA

The business: a summary Delivering our strategy 2014 performance Future growth drivers

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THE BUSINESS: A SUMMARY (31 December 2014)

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• Parent company of The Share Centre

Limited and Sharefunds Limited

• Principal business (97% of revenues) –

retail execution-only stockbroking

• Largest independent publicly quoted

retail execution-only stockbroker

• The Share Centre founded in 1990
• Over 38,000 customer shareholders
• 251,000 customer accounts
• £2.6bn of assets under administration
• Over 80% of transactions undertaken
• nline
• Revenue model split between dealing

commission, fees and interest income

• Gaining market share of revenues

relative to peers*

• Profitable since 1996, and throughout

the last two bear markets

* the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS),

HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing

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THE BUSINESS MODEL: FINANCIAL ASPECTS

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• Scalable delivery
• Strong balance sheet
• Aligned stakeholder interests
• Employees
• Customers
• Shareholders

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DELIVERING OUR STRATEGY

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DELIVERING OUR STRATEGY – 2014

putting customers first focus on core business partnerships & acquisitions

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DELIVERING OUR STRATEGY – 2014

Charging structure Website Opening hours Trustpilot

Awards 2014

Best Stockbroker for Customer Service – Financial Times & Investors Chronicle Best Online Stockbroker – Personal Finance Awards Best ISA Provider – Shares Magazine Highest Overall Client Satisfaction - Investment Trends Best Customer Service – Investment Trends Best Stockbroker – MoneyAM Best Customer Service - MoneyAM

Awards 2015

Best Online Stockbroker – ADVN Self Select ISA Provider of the Year - ADVN

putting customers first

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DELIVERING OUR STRATEGY – 2014

Trustpilot

putting customers first Trustpilot reviews

“I find The Share Centre to be an excellent, reputable and efficient

• rganisation for the management of my share portfolio. I would sincerely

recommend their services to others looking to deal with the markets almost direct in a simple and straightforward manner. I have found their transactions team to be helpful and accommodating, and the level of service

• ffering is high.”

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DELIVERING OUR STRATEGY – 2014

Brand advertising IPOs EIS administration PR

focus on core business

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DELIVERING OUR STRATEGY – 2014

partnerships & acquisitions

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EXPERIENCED MANAGEMENT

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MIKE BIRKETT FINANCE DIRECTOR Joined from Thomas Cook 2014 GAVIN OLDHAM CHAIRMAN RICHARD STONE CHIEF EXECUTIVE RICHARD TOLKIEN FRANCESCA ECSERY GARETH THOMAS Career at John Lewis Joined 2014 DARREN CORNISH DIRECTOR OF CUSTOMER EXPERIENCE Joined from E.ON 2015 JOHN SARGEANT IT DIRECTOR Joined from One Stop (Tesco) 2014

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Share plc & The Share Centre The Share Centre only Non-Executive Director

DIRECTORS

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REGULATORY CHANGES

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April 2014 RDR 2 April 2014 AIM Stamp Duty removed 2014 – 15 Pension and ISA changes July 2014 CASS rules To come MiFID II

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MARKET BACKDROP

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3100 3200 3300 3400 3500 3600 3700 3800

FTSE All Share

• Year of two halves –

volatility increased in H2

• Impact on personal

investor activity

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2014 PERFORMANCE

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OUR PERFORMANCE – 2014

• Revenue market share* at record level

2014 2013

• Including interest

7.66% 7.16%

• Excluding interest

8.69% 7.64%

• Revenue flat:

£15.0m £15.0m

• Including interest: 0.2%
• Excluding interest: 2.6%
• Operating profit

£0.4m £1.4m

• Headline profit before tax

£0.8m £1.7m

• Underlying earnings (profit after tax)

£1.5m £1.8m

• Strong balance sheet: net cash £12.7m and

£12.7m £13.6m available for sale investments £9m

* the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing

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OUR PERFORMANCE – 2014 – REVENUES

1,000 2,000 3,000 4,000 5,000 6,000 7,000 Dealing Commission Fees Interest

2013 2014 £000s

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REVENUE PERFORMANCE RELATIVE TO PEER GROUP – 2014

• 13.2%

3.2%

• 10.4%
• 0.8%

6.3% 2.6%

• 15%
• 10%
• 5%

0% 5% 10%

Peer Group TSC

the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing

Dealing Commission Fees Overall excluding Interest

• Interest income for the Group fell 14.5% (peer group rose 24.4%)
• Overall revenue growth including interest was 0.2% (peer group fell 6.4%)

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OUR PERFORMANCE – 2014 – MARKET SHARE

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 2010 2011 2012 2013 2014

Record 7.66%

the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing

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OUR PERFORMANCE – 2014 - COST BASE

£m

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OUR PERFORMANCE – 2014 – PROFITABILITY

500 1,000 1,500 2,000 2,500 3,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 2010 2011 2012 2013 2014 Revenues Underlying earnings (profit after tax)

Revenues £000s Underlying earnings £000s

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OUR PERFORMANCE – DIVIDEND HISTORY

Continued pattern of c.20% growth per annum

0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

pence per share

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OUR PERFORMANCE – 2014 – BALANCE SHEET STRENGTH

Net cash £12.7m

• 5,000

5,000 10,000 15,000 20,000 25,000

2012 2013 2014

£ 000s

Cash Investments Other

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PERFORMANCE – Q1 2015

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• Trading in Q1 in line with expectations
• Market share against peers increased to 7.48% in Q1 against

7.30% in the same period last year

• Assets held on behalf of customers increased by 8% to

£2.7bn in Q1

• Cash held on behalf of customers rose by 27% over Q1 2014

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MARKET OVERVIEW – BIG PICTURE

Economy Politics Regulation FCA

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MARKET OVERVIEW – PERSONAL INVESTORS

FCA

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Real Wages Increased Freedom Changing Technology FCA

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FUTURE GROWTH DRIVERS

putting customers first focus on core business partnerships & acquisitions

Customer service and independence Value and regulation Increased need to save and make own arrangements Service development, eg website Ongoing marketing spend Scalable business model Corporate partnerships Market consolidation underpinned by greater commerciality

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SUMMARY & OUTLOOK

• Business strategy is clearly defined and is being delivered
• Continued profitability and strong balance sheet
• Increasing market visibility
• Growth drivers supporting long term revenue growth
• Scalability of business can deliver margin expansion

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AGM RESOLUTIONS

1. Report & financial statements for y/e 31 December 2014 2. Directors’ remuneration report for y/e 31 December 2014 3. Final dividend for y/e 31 December 2014 4. Re-elect Gavin David Redvers Oldham as director 5. Re-elect Richard Ian Tolkien as director 6. Re-elect Richard William Stone as director 7. Re-elect Francesca Eva Ecsery as director 8. Elect Gareth Vaughan Thomas as director 9. Re-appoint Deloitte LLP as auditors

• 10. Authorise directors to allot shares (section 551)

11. Disapply section 561 Companies Act 2006

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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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