29 Apr 2016 07:00
29 April 2016
Octagonal plc
("Octagonal" or the "Company")
Post Close Trading Update
Following completion of the reporting period to 31 March 2016, Octagonal provides the following trading update from its wholly owned subsidiary Global Investment Strategy UK Ltd ("GIS").
The second half of the financial year to March 31st 2016 was certainly challenging. Results across the investment banking sector clearly demonstrated the downturn in corporate activity and this has had an impact on the earning of most major investment banks as noted in their results. GIS's business is obviously aligned to their fortunes and so has faced similar challenges. This said, GIS were quick to adapt to the downturn and reduced staffing levels and operating costs where possible. The reduction in staff was to some extent expected as in this period GIS had migrated onto a next generation operating system, which was always intended to provide savings. GIS continues to automate its systems and procedures and this will add to further cost savings in the year ahead, though it will look to maintain current staffing levels to support existing activities.
Despite this most challenging environment, GIS's results for the year are expected to be in-line with expectations, with revenues exceeding £4.2m and net profits (EBITDA) of approximately £1.1m.
Positively, GIS executed over 82,000 transactions in the year and also saw a marked improvement in March 2016, which continues today, and is encouraging for the financial year ahead.
Along with the appointment of Samantha Esqulant as Octagonal COO in November 2015 and now CEO of GIS and John Gunn's switch to GIS Executive Chairman (he remains CEO of Octagonal), GIS has, over the year, also increased their Compliance staff and has appointed a new compliance officer and one other member of staff to this important area.
For the year ahead we remain positive and confident that GIS will achieve its objectives of growing revenues, reducing the cost base and offering addition services to its expanding client base.
The above results are those of GIS. Octagonal will look to release their full year audited results reflecting the additional effects of the PLC consolidation towards the end of June.
For further information please visit www.octagonalplc.com or contact:
Octagonal Plc | +44 (0) 20 7048 9400 |
John Gunn / Nilesh Jagatia | |
Beaumont Cornish Limited (Nominated Adviser) James Biddle / Roland Cornish | +44 (0) 20 7628 3396 |
Northland Capital Partners Limited (Broker) | |
Patrick Claridge / John Howes / David Hignell | +44 (0) 20 7382 1100 |