Themes 2 Strong performance Growth in funds under management - PowerPoint PPT Presentation

Themes 2 • Strong performance • Growth in funds under management • Leveraging national office network • Recurring income 57% (2009 54%)

Results – 52 weeks to September 2010 3 Sept 2010 Sept 2009 % change £’000 £’000 Revenue 234,890 187,241 25% Other operating income 15,999 25,071 -36% Total income 250,889 212,312 18% Profit before tax pre redundancy cost, 40,164 32,143 25% contract renewal payment and amortisation of client relationship Profit before tax 31,371 21,939 43% Diluted earnings per share 9.5p 7.2p 32% Diluted earnings per share 12.3p 10.6p 16% pre-redundancy cost, contract renewal payment and amortisation of client relationship Dividend 7.1p 7.1p

Cost KPIs 4 Overhead and business support fixed costs as a % of total income 2010 2009 2008 Total fixed business support cost as a % of income 19.0% 21.3% 19.3% Total fixed overhead costs as a % of income 12.2% 12.6% 11.6% Business Facing Income to Salary Ratio 2010 2009 2008 Investment management 4.5 3.9 4.5 Corporate advisory & broking 2.4 2.1 2.5

Staff Turnover 5 Front Office:

More Detailed Results 6 Sept 2010 Sept 2009 % Change £’000 £’000 Total Income 250,889 212,312 18.2% Salaries (85,187) (75,552) 12.8% Other operating costs (92,094) (78,873) 16.8% Profit before profit share* 73,608 57,887 27.2% Profit before profit share (33,789) (27,211) 24.2% Operating Profit* 39,819 30,676 29.8% Net finance income and other gains and losses 345 1,467 -76.5% Profit before tax 40,164 32,143 25.0% Redundancy cost (253) (3,638) Contract renewal payments (2,191) - Amortisation of client relationships (6,349) (6,566) Profit before tax 31,371 21,939 43.0% * Excluding redundancy costs, contract renewal payments and amortisation of client relationships

Capital Adequacy 7 September 2010 £’m Capital Resources 64.0 Capital Requirement 39.6 Surplus 24.4 Firm’s cash 61.8

Funds Under Management 9 Sept Sept % 2010 2009 change Indices FTSE APCIMS Private Investor Series Balanced Portfolio 2,844 2,640 7.7% FTSE 100 5,598 5,082 10.2% Funds Discretionary funds under management £14.0bn £11.8bn 18.6% Advisory funds under management £ 9.2bn £ 8.7bn 5.7% Total managed funds £23.2bn £20.5bn 13.2%

Funds Under Management 10 Advisory Discretionary Total Managed funds funds funds % increase in funds year on year 5.7% 18.6% 13.2% £ billion £ billion £ billion Value of funds at 27 September 2009 8.7 11.8 20.5 Inflows 0.7 1.6 2.3 Outflows (0.4) (0.3) (0.7) Transfers (0.1) 0.1 - Market movement 0.3 0.8 1.1 Value of funds at 26 September 2010 9.2 14.0 23.2

Return on Funds Under Management 11 2010 2009 2009 2008 (excluding one off interest income) Average return on discretionary funds 1.21% 1.23% 1.27% 1.18% Average return on advisory funds 0.92% 0.93% 0.96% 0.73%

Regional Network 12

13 Split of Income

14 Investment Management Totals

15 Investment Management – Discretionary operating profit

Corporate Advisory and Broking 17 2010 2009 £’000 £’000 Total Income 10,877 8,297 Salaries (4,401) (3,990) Other operating costs (4,173) (4,161) Profit before profit share 2,303 146 Profit share (758) (71) Operating profit excluding redundancy costs, contract 1,545 75 renewal payments

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19 Brand Awareness

20 Awards

Strategy 21 • Leverage scale of one of the UK's largest independent investment managers • Build on recurring revenue and discretionary management • Retain and attract clients through richer levels of customer service • Attract and motivate talented people and Build the Brand

Outlook 22 • Government focus on equity over debt • Business well positioned to withstand adverse market conditions • Building on existing national branch network • Expect more Regulation – both from UK and EU • Considered optimism for the future

Analysis of Funds 24 Discretionary £14.0bn Advisory £ 9.2bn Execution-only £ 4.3bn Total funds £27.5bn Custody £25.5bn Certificated £ 2.0bn Total funds £27.5bn

25 Allocation of Funds Under Management

Other Key Facts 26 • Assets under management • Assets under management • 41 offices • 40 offices • Corporate adviser to 90 • Corporate adviser to 103 quoted companies quoted companies

27 * * CF30’s - 628 Staff

Approach to Investment 28 What makes us special is that the person who talks to the client makes the investment decisions. With the help of our: • Asset Allocation Committee • Strong research departments • Collective funds analysis service • Model portfolios management options • Strong compliance

Remuneration 29 • Basic salary • Profit share • Share ownership • All personnel believe they can make a difference