September 18, 2007 16:30 ET

Sceptre Investment Counsel Reports Q3 Results Earnings Increase 59%, Dividend Increased 33%

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2007) - Sceptre Investment Counsel Limited (TSX:SZ), a leading independent Canadian money management firm, today reported its financial results for the third quarter ending August 31, 2007.

Third quarter earnings were $2,150,000 or 15 cents per share diluted (15 cents per share basic) compared with $1,354,000 or 10 cents per share diluted (10 cents per share basic) for the same period last year representing a 59% gain year over year.

Revenue for the third quarter was $10,163,000 compared with $7,065,000 for the third quarter last year representing a 44% gain year over year. Revenue for the quarter was $992,000 or 11% higher than the second quarter. Institutional, mutual fund and alliance partner revenues increased while there was a modest decline in private client revenues due to a reduction in assets under management. Investment income increased by $255,000 to $390,000 due to a realized gain ($237,000) on the sale of holdings in the corporate investment portfolio. The gain is tax sheltered due to available capital losses. The third quarter revenues from the Company's pension and institutional fund business are calculated based on market values as of June 30, 2007.

Expenses for the quarter increased by 35% from the similar quarter last year but declined by 3% from the previous quarter. Revenue related expenses increased from the previous quarter by 7% to $1,620,000 but other expenses declined by 5% to $3,546,000. Expense reductions included remuneration, listing expenses, occupancy costs and fund expenses.

"Our revenue improvement in the quarter was gratifying as new assets, funded in the previous quarter, generated a full period of fees. Cost containment efforts also yielded positive results. I am very pleased with our financial results and investment performance during the quarter. I would also like to note that Sceptre and its clients have no exposure to non-bank asset-backed commercial paper," stated Richard Knowles, President and Chief Executive Officer.

He added, "Increased market volatility as a result of ongoing credit concerns dampened investment returns across most equity markets. Additionally, the continuing strength of the Canadian dollar, again, adversely affected foreign equity returns. I anticipate that markets will remain unsettled over the next few months."

The Company, having considered its financial requirements and new business opportunities and market outlook, has declared a quarterly dividend of 12 cents per share on outstanding common shares, payable on October 31, 2007 to shareholders of record September 27, 2007. The previous quarterly dividend was 9 cents per share.

About Sceptre Investment Counsel

Sceptre Investment Counsel Limited is a leading independent Canadian money management firm with assets under supervision of approximately $9.1 billion. The Company's Pension and Institutional Fund group manages investment portfolios for a wide range of clients, including corporations, governments, hospitals, charitable foundations, endowments, universities and unions. Through its Private Client group, Sceptre provides discretionary funds and segregated account management for high net-worth individuals and offers a family of nine mutual funds. Sceptre employs approximately 65 people in its offices in Toronto, Waterloo, Montreal and Vancouver. Sceptre's common shares trade on the Toronto Stock Exchange, under the symbol SZ.

Contact Information

  • Sceptre Investment Counsel Limited
    Richard L. Knowles
    President and Chief Executive Officer
    (416) 866-2380