Share Posts Highest Ever Revenue In Strong Year For Global Markets

8th Mar 2018 10:49

LONDON (Alliance News) - Stockbroker Share PLC said Thursday both revenue and market share reached record levels in 2017, boosted by a major new partnership and strong volumes.

Share, which operates retail stockbroker The Share Centre, posted a revenue increase of 28% for 2017 to GBP18.7 million, while market share rose to just under 13% from 9.9% over the year.

Commission income rose 51% year-on-year in 2017 to GBP10.6 million, fee income by 7% to GBP7.2 million, and interest income by 14% to GBP900,000. Assets under management rose 27% to GBP4.7 billion from GBP3.7 billion, and trading volumes rose 14% year-on-year.

Pretax profit did fall however, to GBP400,000 from GBP1.0 million, though 2017 did include some one-off items. However, the operating loss reduced to GBP793,000 from GBP1.3 million.

Share is increasing its dividend for the year to 0.40 pence per share, from 0.25p in 2016.

The company said it is "encouraged" by these results, with growth initiatives put in place over the last two months bearing fruit. Revenue was driven by the launch of Computershare service in May and strong investor activity.

Profitability was hit by services and technology investment, as well as extra headcount.

Looking ahead to 2018, Share believes global economic growth will support corporate earnings, and it also thinks UK economic growth in 2018 will be "robust". There is "much to be positive about", Share said, and it is confident going ahead.

Chief Executive Richard Stone said: "The group's strong revenue growth, its improved underlying earnings and the uplift in assets under administration all reflect the strategic initiatives put in place some two years ago. Our focused effort to acquire accounts from, and work with, large partners and well-known brands was a key contributor to these results and remains an important part of our growth strategy."

"What is also encouraging is that our revenue market share against our bench-marked peers has also risen significantly and stands at a new high for the year."

Shares in the company were up 3.2% on Thursday at 26.20p.

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