ANNUAL GENERAL MEETING 2015 1 1 AGM - 10 June 2015
AGM 2015 2 2 AGM - 10 June 2015
3 3 AGM - 10 June 2015
AGENDA The business: a summary Delivering our strategy 2014 performance Future growth drivers 4 4 AGM - 10 June 2015
THE BUSINESS: A SUMMARY (31 December 2014) • Parent company of The Share Centre • £2.6bn of assets under administration Limited and Sharefunds Limited • Over 80% of transactions undertaken • Principal business (97% of revenues) – online retail execution-only stockbroking • Revenue model split between dealing • Largest independent publicly quoted commission, fees and interest income retail execution-only stockbroker • Gaining market share of revenues • The Share Centre founded in 1990 relative to peers* • Over 38,000 customer shareholders • Profitable since 1996, and throughout the last two bear markets • 251,000 customer accounts * the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing 5 5 AGM - 10 June 2015
THE BUSINESS MODEL: FINANCIAL ASPECTS • Scalable delivery • Strong balance sheet • Aligned stakeholder interests - Employees - Customers - Shareholders 6 6 AGM - 10 June 2015
DELIVERING OUR STRATEGY 7 7 AGM - 10 June 2015
DELIVERING OUR STRATEGY – 2014 putting focus on core partnerships customers first business & acquisitions 8 8 AGM - 10 June 2015
DELIVERING OUR STRATEGY – 2014 Awards 2014 Best Stockbroker for Customer Service – Financial Times & Investors Chronicle Best Online Stockbroker – Personal Finance Awards Best ISA Provider – Shares Magazine putting Highest Overall Client Satisfaction - Investment Trends Best Customer Service – Investment Trends customers first Best Stockbroker – MoneyAM Best Customer Service - MoneyAM Charging structure Website Awards 2015 Opening hours Best Online Stockbroker – ADVN Self Select ISA Provider of the Year - ADVN Trustpilot 9 9 AGM - 10 June 2015
DELIVERING OUR STRATEGY – 2014 Trustpilot reviews putting customers first Trustpilot “I find The Share Centre to be an excellent, reputable and efficient organisation 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 offering is high.” 10 10 AGM - 10 June 2015
DELIVERING OUR STRATEGY – 2014 focus on core business Brand advertising IPOs EIS administration PR 11 11 AGM - 10 June 2015
DELIVERING OUR STRATEGY – 2014 partnerships & acquisitions 12 12 AGM - 10 June 2015
EXPERIENCED MANAGEMENT MIKE BIRKETT FINANCE DIRECTOR RICHARD STONE Joined from Thomas CHIEF EXECUTIVE Cook 2014 1 1 JOHN SARGEANT Share plc & 1 The Share Centre IT DIRECTOR 2 GAVIN OLDHAM 1 Joined from One Stop CHAIRMAN (Tesco) 2014 DIRECTORS The Share Centre only 2 GARETH THOMAS DARREN CORNISH 3 2 Career at John Lewis DIRECTOR OF CUSTOMER 3 Joined 2014 Non-Executive Director EXPERIENCE Joined from E.ON 2015 3 3 RICHARD TOLKIEN FRANCESCA ECSERY 13 13 AGM - 10 June 2015
REGULATORY CHANGES April 2014 RDR 2 April 2014 AIM Stamp Duty removed 2014 – 15 Pension and ISA changes July 2014 CASS rules To come MiFID II 14 14 AGM - 10 June 2015
MARKET BACKDROP FTSE All Share 3800 3700 Year of two halves – 3600 • volatility increased in H2 3500 Impact on personal • investor activity 3400 3300 3200 3100 15 15 AGM - 10 June 2015
2014 PERFORMANCE 16 16 AGM - 10 June 2015
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 17 17 AGM - 10 June 2015
OUR PERFORMANCE – 2014 – REVENUES 7,000 6,000 5,000 £000s 4,000 3,000 2,000 1,000 0 Dealing Commission Fees Interest 2013 2014 18 18 AGM - 10 June 2015
REVENUE PERFORMANCE RELATIVE TO PEER GROUP – 2014 Dealing Overall Fees Commission excluding Interest 10% 6.3% 5% 3.2% 2.6% Peer Group 0% -0.8% TSC -5% -10% -10.4% -13.2% -15% • 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%) the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing 19 19 AGM - 10 June 2015
OUR PERFORMANCE – 2014 – MARKET SHARE 8.0% Record 7.66% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 2010 2011 2012 2013 2014 the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, Saga Personal Finance, Selftrade and TD Direct Investing 20 20 AGM - 10 June 2015
OUR PERFORMANCE – 2014 - COST BASE £m 21 21 AGM - 10 June 2015
OUR PERFORMANCE – 2014 – PROFITABILITY 16,000 3,000 15,000 2,500 Underlying earnings £000s 14,000 2,000 Revenues £000s 13,000 1,500 12,000 1,000 11,000 500 10,000 0 2010 2011 2012 2013 2014 Revenues Underlying earnings (profit after tax) 22 22 AGM - 10 June 2015
OUR PERFORMANCE – DIVIDEND HISTORY 0.7 0.6 0.5 pence per share Continued pattern of c.20% growth 0.4 per annum 0.3 0.2 0.1 0.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 23 23 AGM - 10 June 2015
OUR PERFORMANCE – 2014 – BALANCE SHEET STRENGTH 25,000 20,000 15,000 £ 000s 10,000 Net cash £12.7m 5,000 0 2012 2013 2014 -5,000 Cash Investments Other 24 24 AGM - 10 June 2015
PERFORMANCE – Q1 2015 • 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 25 25 AGM - 10 June 2015
26 26 AGM - 10 June 2015
MARKET OVERVIEW – BIG PICTURE FCA Economy Politics Regulation 27 27 AGM - 10 June 2015
MARKET OVERVIEW – PERSONAL INVESTORS FCA FCA Real Increased Changing Wages Freedom Technology 28 28 AGM - 10 June 2015
FUTURE GROWTH DRIVERS putting focus on core partnerships customers first business & acquisitions Customer service and Service development, Corporate partnerships independence eg website Market consolidation Value and regulation Ongoing marketing spend Increased need to save and make own arrangements Scalable business model underpinned by greater commerciality 29 29 AGM - 10 June 2015
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 30 30 AGM - 10 June 2015
31 31 AGM - 10 June 2015
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 32 32 AGM - 10 June 2015
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. 33 33 AGM - 10 June 2015
34 34 AGM - 10 June 2015
Recommend
More recommend
