LONDON (Alliance News) - Shore Capital Group Ltd said on Monday that revenue rose in the first half of 2018 with profit edging higher as well, as the Asset Management division boosted results.
Revenue for the first half of 2018 grew 6.5% to GBP21.6 million from GBP20.3 million a year ago, as pretax profit added 4.0% to GBP2.6 million versus GBP2.5 million for the first half of 2017.
The stock broker and asset manager proposed a dividend of 5.0p per share, unchanged from last year's payout.
Over the period, Shore said its Capital Markets business was "resilient" against a backdrop of political uncertainty and protectionist trade.
The unit in the period acted as joint bookrunner for a GBP198 million placing in GVC Holdings PLC on behalf of Playtech PLC, and a GBP70 million placing by Dairy Crest Group PLC. Capital Markets also acted as the nominated adviser, sole bookrunner and broker for the initial public offering of Cake Box Holdings PLC in June.
Capital Markets revenue fell 8.5% to GBP13.5 million as pretax profit for the unit dropped 19% to GBP2.7 million. The division's net margin tightened to 20.3% from 23.0% a year ago.
"Although revenues are lower than in the comparative period, the business has continued to grow its retained client base; enhance its corporate broking and equity research offerings; and maintain its strong reputation with buy-side investors and market counterparties," said Shore.
Shore added that it is "comfortable" the Capital Markets business is "well-positioned to take advantage of future market opportunities as they arise".
The Asset Management unit enjoyed a "very strong period", with assets under management at the period end rising 13% to GBP915 million from GBP810 million a year before.
Revenue for the unit shot up 49% to GBP7.3 million, with pretax profit more than tripling to GBP1.3 million from just GBP400,000 last year. Asset Management's net margin rose sharply to 17.7% from 8.3% for the same period a year ago.
The Principal Finance division recorded a pretax loss of GBP700,000, wider than last year's loss of GBP400,000.
Shore said it remains optimistic on the future despite "volatility" created by political uncertainty.
"The group has continued to grow, making progress across its primary areas of operation, demonstrating the strength of its diversified business model. Capital Markets has won new clients and been active across a variety of new mandates, whilst Asset Management has achieved healthy growth in revenues, profitability and assets under management," said Chairman Howard Shore.
Shares in Shore were untraded at 255.00 pence on Monday.
Playtech (PTEC)
Cake Box Holdi. (CBOX)