15th Nov 2016 12:01
LONDON (Alliance News) - Investment company Octagonal PLC said Tuesday it is making progress on improving efficiency in its sole subsidiary company and does not anticipate more acquisitions in the short-term.
AIM-listed Octagonal, which operates solely through its wholly-owned stockbroking subsidiary Global Investment Strategy UK Ltd, booked a pretax profit of GBP902,000 for the six months to September 30. Revenue for the period increased to GBP2.9 million year-on-year from GBP1.9 million.
Octagonal said that net margins in Global Investment Strategy have improved to 40% from 28% in the comparable six month period, but noted revenue was also boosted by the positive impact of a strong US dollar.
Octagonal said it does not anticipate making any acquisitions in the "near-term", and only look at new business lines for Global Investment Strategy if they provide an earnings-enhancing opportunity.
"Whilst the business remains subject to fluctuations in global markets, we continue to be confident in the outlook for the remainder of the financial year," said John Gunn, chief executive officer.
"We have seen improved margins with our operating subsidiary GIS which has come as a result of improved processing efficiencies and reduced direct costs. We will continue to seek further improvements over the remainder of the financial year where possible," added Gunn.
Shares in Octagonal were up 8.3% at 1.76 pence Tuesday morning.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
OCT.L