5th Aug 2014 08:56
LONDON (Alliance News) - Share PLC, the parent company of retail stockbroker The Share Centre, Tuesday reported a 9.8% increase in first half pretax profit, driven by increased income from dealing commission on the back of more active new customers and higher fee income following the introduction of the company's new low, fixed-rate monthly charging structure.
In a statement, Share said it made a GBP761,000 pretax profit in the six months ended June 30, compared with GBP693,000 in the corresponding period last year. Revenue increased by 7.9% to GBP7.9 million, while administrative expenses rose by 7.4% to GBP7.4 million.
"Our market share of revenues across our peer group also reached a record high of 7.7% for the first half, with the second quarter setting an all-time high of 8.15%. Increased dealing activity helped to drive these encouraging results and they also follow the introduction of our new simple flat rate fee structure last Summer," Chief Executive Richard Stone said in a statement.
The CEO said that Share has made a brisk start to the second half, helped by the increase in individual savings account allowances to GBP15,000 following changes by the UK government earlier this year.
"The year ahead looks encouraging, with the market holding its strength notwithstanding international tensions," Chairman Gavin Oldham said. "With lacklustre growth overseas and concern over referenda both in Scotland and potentially on EU membership, in addition to the looming general election, we are unlikely to see a repeat of last year's stockmarket gains but activity continues to be high as investors look for better returns than those available on cash."
Share PLC shares were Tuesday quoted up 8.3% at 39.00 pence.
By Samuel Agini; [email protected]; @samuelagini
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