Annual Report for the year ended 31 December 2008

evolution securities’ income analysis
Evolution securities’ total income (before fee and commission expenses)
has clearly been impacted in 2008 from a weaker primary performance
with total primary income (before fee and commission expenses) in 2008
lower at £9.2m (2007: £18.6m). Equity commissions of £12.7m (2007:
£16.4m) and trading revenues of £0.1m (2007: £15.8m) have also fallen
significantly following the decline in market conditions, however this was
partially offset by a 97% increase in fixed income revenues at £7.1m
(2007: £3.6m). secondary income therefore fell in total to £19.9m
(2007: £35.8m).
evolution securities’ cost analysis
in view of deteriorating revenue opportunities during the year, Evolution
securities underwent a thorough cost reduction exercise. Costs 1 have
therefore decreased in 2008 by over 11% or £5.9m. This was achieved
through two redundancy rounds, supplier re-negotiations and suspension
of phased development programmes. staff costs this year continue to
make up a similar proportion of the total cost base as in 2007. The other
costs have remained stable and relate principally to premises, direct
transactions, systems and market data.
1 Excludes the impact of the cost of options and non-recurring and 2007 exceptional items.
evolution securities china
Following the announcement of the proposed transaction entered into
with First Eastern, Evolution securities China (which was previously shown
as separate geographical segment) has been treated as discontinued
in both 2008 and 2007. As a result the Consolidated income statement
shows a loss for the year from discontinued operations of £2.5m
(2007: £0.4m profit).
At 31 December 2008, £4.8m of assets (including cash of £0.8m)
and £0.6m of liabilities to third party’s outside the Group have been
reclassified as assets and liabilities of disposal group held-for-sale.
EVO SECURITIES INCOME
4
1
1
2
EVO SECURITIES INCOME 4
PCIM
08 07
EVO SECURITIES INCOME 4 PCIM INCOME
EVOLUTION SECURITIES’ INCOmE ANALYSIS EVOLUTION SECURITIES’ COST ANALYSIS
EVO SECURITIES COST
URITIES INCOME 4
08 07
PCIM INCOME 08 08 07 07
EVO SECURITIES COST PCIM
3
3
2
EVO SECURITIES COST 3
PCIM COST
1
4
07 08 08 07
2
NOTES 07
08
GRAPH 1A NOTES GRAPH 2
3
3
4
2 2
5
2
3
1
3
4
2
2007 3 %
2
08
07 08 07
CURITIES COST 4
PCIM COST 2
1
5 3 4
4
1
1
1
3
4
5
1
2008 4
1. CORpORATE FiNANCE 1
3
2. sAlEs COMMissiONs
3. TRADiNG
2
%
31
43
–
3
2
3 4
1
2008 3
3
1. 1sTAFF
COsTs
2
2. OTHER COsTs 1 1
2
3. iNCOME sTATEMENT CHARGE FOR
%
42
36
2
4. FixED iNCOME
2
5. OTHER
08 24
2
2
2
07
4
sHARE OpTiONs GRANTED TO EMplOYEEs 08
2
AND NON-RECuRRiNG AND 2007
3
3
4
2 2
4
2
1
1
1
2007 3 4 %
1. CORpORATE FiNANCE
2. sAlEs COMMissiONs
1
341
30
3. TRADiNG 3
29
4. FixED iNCOME
5. OTHER
1
2
2
7
–
2
1
2
07 08 07
NOTES GRAPH 1A NOTES GRAPH 2 NOTES GRAPH 1B
2
3
3
2
4
3
1
NOTES GRAPH 1A
1
3
2
4
2
2
1
3
3
1
1
ExCEpTiONAl ExpENsEs 22
1. sTAFF COsTs 41
2. OTHER COsTs 1
3
3. iNCOME sTATEMENT CHARGE FOR 2
38
sHARE OpTiONs GRANTED TO EMplOYEEs
1
1
AND NON-RECuRRiNG AND 1 2007
2
ExCEpTiONAl ExpENsEs 21
1
NOTES GRAPH 2
3
2
4
1
NOTES GRAPH 1
13
1
3