(Alliance News) - Octagonal PLC on Wednesday posted a higher half-year profit, resulting from its Global Investment Strategy UK subsidiary's "strong" performance.
The London-headquartered financial services firm reported a GBP1.9 million pretax profit for the six months ended September 30, up 73% from a GBP1.1 million profit a year before as revenue jumped 45% to GBP4.8 million from GBP3.3 million.
This revenue was generated by the company's Global Investment Strategy UK Ltd unit, which Octagonal said: "Delivered strong earnings for the half year as markets remained active through the summer months against traditional trends, and our balanced business model continued to deliver consistent returns."
On Monday, Octagonal had said it strongly disagreed with complaints filed by the US Securities & Exchange Commission against Global Investment Strategy UK. It opted to cease the conduct cited by the SEC so as to avoid a protracted dispute.
Back in December, Octagonal declared a 0.1p per share dividend, which was paid Tuesday this week. It also announced that it would be seeking shareholder approval to de-list the company from AIM, as it believes the cancellation is in the best interests of the company and its shareholders given there appeared to be no immediate need for raising additional funds.
Outlook-wise, Octagonal said: "Whilst trading continues in line with the board's expectations, the result for the year may be impacted by any effect of the recently announced SEC complaint against GIS in the US, the outcome of which cannot yet be determined with any certainty."
Shares in Octagonal were suspended from trading on Christmas Eve following the SEC complaint and remained suspended on Wednesday.
By Anna Farley; annafarley@alliancenews.com
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