8th Jun 2016 08:49
LONDON (Alliance News) - Share PLC, the AIM-listed UK retail stockbroker, on Wednesday said it is in advanced discussions and initial development work for a leading wealth management business it did not name, in a move expected to "add materially" to revenue and profit from 2017.
"The development work is designed to deliver a streamlined administration service for part of that business's operations enabling an enhanced service experience for end customers and intermediaries," Share said in a statement.
"It is intended that The Share Centre will provide core custody and transactional services on an outsourced basis as part of the ongoing service," Share said.
The news came as Share said its trading performance in the financial year to date continues to be in line with management expectations.
Investor activity has remained subdued since the end of the first quarter, Share said, with retail investor behaviour affected by the UK's upcoming June 23 referendum on whether to remain a member of the EU or leave.
In a poll undertaken by the company in May, 20% of customers indicated that they had deferred investment decisions or changed their investment behaviour, with a further 18% indicating that they were planning to do so before June 23.
Even amid subdued activity, Share said that independent research indicates it has performed better than peers.
The company cited data collated by ComPeer Ltd. The data showed that Share's share of new individual savings accounts opened in the first three months of 2016 was 4.94% as compared with 4.74% the corresponding period of 2015.
Share's first half results to June 30 will be released on August 10.
The stock was up 0.5% at 28.15 pence Wednesday morning.
By Samuel Agini; [email protected]; @samuelagini
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