SAM Syndicate

 
TIDMSAM 
 
For immediate release: 0700hrs Friday 25 February 2011 
 
                        Syndicate Asset Management Plc 
 
                        ("Syndicate" or the "Company") 
 
                Results of Strategic Review and Trading Update 
 
The Directors of Syndicate Asset Management Plc (AIM: SAM), are pleased to 
report the conclusions of the strategic review following the appointment of 
Mark Cheshire as Group CEO on 15 February 2011. 
 
Group focus 
 
Going forward, the Group will focus exclusively on the wealth management sector 
through its offering of financial planning and asset management services. The 
Board sees significant opportunities within the UK wealth management sector - 
both at the mass affluent and high net worth levels - and believes it now has 
the momentum, internal processes, national footprint of offices and the support 
of its major shareholders to capitalise upon those opportunities. 
 
Sale of EPIC Asset Management 
 
Given the Company's wish to focus exclusively on the wealth management sector, 
the decision has been reached by the Board, in consultation with internal and 
external parties, to seek to dispose of EPIC, the Company's institutional fixed 
income asset management business. To that end, advisers have been appointed and 
discussions with third parties have commenced. However, no assurances can be 
given at this stage that these discussions will lead to a disposal. The Board 
will provide an update in due course. 
 
Proposed name change to Ashcourt Rowan 
 
It is the Board's intention to also seek Shareholders' permission to change the 
Company's name to better reflect its strong position within the wealth 
management sector. It is proposed that the Group will operate under the lead 
brand of Ashcourt Rowan, with high net worth clients requiring more bespoke 
solutions being serviced via the Savoy branded service. A General Meeting will 
be called in due course to vote on this matter. 
 
Streamlining of Syndicate Central Overhead and Corporate Structure 
 
In line with the refocusing of the Group on the wealth management sector, it is 
the intention to simplify Syndicate's central overhead structure so that it is 
more appropriate for a wealth management business employing some 360 staff 
across 19 locations with approximately GBP4.5 billion of funds under management 
and advice. As previously announced, the Group is also consolidating its London 
property portfolio which will result in the London offices of its two wealth 
management businesses, Ashcourt Rowan and Savoy, benefiting from being based in 
a single location. 
 
The Group will also look to simplify its corporate structure and reduce the 
number of separate legal entities in the Group. It is expected these exercises 
will deliver significant cost savings, the benefits of which will largely be 
felt in the next financial year. 
 
In addition, it is the Board's intention to undertake a share consolidation at 
the appropriate time. 
 
Trading update 
 
The Board is also pleased to report that trading in its core wealth management 
businesses is in line with the Board's expectations. Current cash balances 
within the Group are GBP6.8 million. As a result of the changes detailed above 
there will, however, be exceptional one-off costs and impairments, the majority 
of which will be non-cash. These will largely fall in the current financial 
year and the first half of next year. The Board is also mindful of the FSCS 
levy which will impact the current financial year by approximately GBP800,000. 
 
Mark Cheshire, Group Chief Executive Officer, commented: 
 
"We have achieved significant momentum in the wealth management sector through 
the Ashcourt Rowan brand in the last fourteen months. Having consulted 
extensively with shareholders, staff and clients, the Board is confident that 
the results of the strategic review will deliver profitable growth to 
shareholders going forward. Furthermore, our clear focus on the wealth 
management sector will allow us to continue strengthening the range of services 
delivered to our clients, as well as improving the positive work culture for 
our staff." 
 
-Ends- 
 
Further information: 
 
Syndicate Asset Management plc 
 
Peter Dew (Chairman) Tel: 020 7659 8060 
 
Mark Cheshire (Group CEO) Tel: 020 7553 2307 
 
Cenkos Securities plc 
 
Stephen Keys (Nomad) 
 
Julian Morse Tel: 020 7397 8900 
 
GTH Communications 
 
Toby Hall/Christian Pickel Tel: 020 3103 3903 
 
 
 
END 
 

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