Strategy for growth: We identified in last year’s Annual Report four key principles which have driven the Group’s strategy and business model since it began life as The Share Centre back in 1991. Those are: first class customer service, scalability and operational efficiency, regulatory compliance and financial performance. As the business approaches its 20th anniversary there is the opportunity to reflect on past success as well as look forward with confidence to the future. In so doing, we have identified the Group’s core values which underpin all that the Group does.
The core values of the business are respect for others, empowerment, clarity, long-term stability and enterprise. These values, combined with the principles behind our growth strategy, have created a firm foundation on which the business continues to build. Throughout the period of economic uncertainty following the credit crisis of 2008 the Group has continued to grow, expand its customer base, improve and extend its customer propositions and increase profitability. This is achievable because of the firm foundation on which the business is based.
As we have previously noted, delivering growth rates ahead of those experienced by our peers is a central objective of the Group and the continued progress in our benchmarked market share of revenues demonstrates our achievements in this regard. We remain focused on this central objective delivered through organic growth with an awareness of acquisition opportunities – such as that presented by the acquisition of customers from Wills & Co – as and when they arise.
The strong growth in market share provides a consistent, long-term basis for achieving the Group’s objective of inclusion in the FTSE 350 within the next 10 years. However, the availability – or otherwise – of interest on cash balances can act in the short-term as either a headwind or tailwind in determining the overall pace of growth. At present its effect is the former, but as interest rates rise in due course to more conventional levels we should see a corresponding tailwind effect on our performance.
First-class customer service: A very high standard of customer service is central to our culture and the foundations on which the business has been built. At the core of all that we do are very large numbers of personal investors who place their trust in our services and who expect a first class experience in return. Respect for customers, regardless of their level of investment or experience, and clarity in the way we communicate are central to that philosophy.
Scalability and operational efficiency: The combination of high quality employees and systems enables the Group to operate in an efficient and scalable manner. With the increasing shift to online interaction by our customers, the additional cost of servicing each additional customer is limited and the Group can swiftly accommodate changes in volumes without issue or commensurate increases in costs. This was evidenced by our taking on the several thousand Wills & Co Stockbrokers Limited customers in February 2010 without any additional resource or systems requirements.
Regulatory compliance: The Group contains two entities which are authorised and regulated by the FSA. They are: The Share Centre Limited (FSA reference number 146768) and Sharefunds Limited (FSA reference number 227807). The Group has to comply with the FSA’s rules and regulations including the submission of data to the FSA on a monthly, quarterly and annual basis. The strong culture of control and compliance is maintained through the work of the compliance team within the Group. In addition to regular departmental reviews, thematic reviews and an oversight of the Group’s implementation of the FSA’s Treating Customers Fairly initiative, the compliance team also signs off all the Group’s retail promotions and ensures staff training is up to date on topics such as Money Laundering legislation.
Financial performance: The Group’s stated objective is to deliver revenue growth and to do so at a rate which is in excess of that achieved by our competitors. Combined with the ability to readily translate revenue growth into profit growth, this will enable the Group to deliver increased earnings such that we can achieve the medium term objectives outlined below. This year has been a year of growth in all the principal areas of our business, as detailed within the Annual Report and Accounts.
Source: Annual Report 2010
