26th Apr 2016 08:04
LONDON (Alliance News) - Share PLC, the retail stockbroker, on Tuesday said it signed heads of terms for the provision of its dealing services to a major financial services business.
The move is expected to "add materially" to Share's revenue and profit from 2017, the company said in a statement without naming the new customer.
Share disclosed the news as part of a broader first-quarter trading update. The company's market share in terms of peer group revenue increased to 7.50% in the first quarter of 2016 from 7.17% in the final three months of 2015, Share said. Excluding interest, Share's market share rose to 9.47% from 8.98%.
First-quarter revenue decreased by 3.0% year on year, Share said, amid stock-market volatility and "subdued" investor activity. Excluding interest, revenue was flat year-on-year, representing a stronger performance than Share's peer group, whose commission and fee revenues decreased by 13%.
Assets held on behalf of customers in the first quarter increased by 18.5% year-on-year to GBP3.2 billion, Share said, boosted by acquiring accounts from Henderson and Barclays. The rise in assets compared to a fall of 7% in the FTSE All Share index over the same period.
Shares in Share were up 5.3% at 29.48 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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