9th Mar 2016 09:53
LONDON (Alliance News) - Share PLC, an independent retail stockbroker, on Wednesday called an end to six consecutive years of increasing its annual dividend by about 20% each year, announcing a shift to a policy of basing the payment on earnings and cash generated.
The changes to Share's dividend policy came as the stockbroker lifted its annual dividend by 19% to 0.74 pence per share from 0.62p, as pretax profit rose to GBP861,000 in 2015 from GBP716,000 in 2014.
Earnings in 2015 were boosted by a one-off net gain of GBP1.5 million resulting from a profit on the partial sale of the company's stake in the London Stock Exchange Group PLC, offset by a write down of the cost of an investment in WAY Group Ltd. Revenue was down to GBP14.1 million in 2015, from GBP15.0 million in 2014, while administrative expenses were up to GBP14.9 million from GBP14.7 million.
Oldham said that it was the second year in which the company's underlying performance did not support the dividend increase, with the payout made possible by the sale of shares held in London Stock Exchange Group. Earnings in 2016 are not expected to support a further 20% increase.
Share will undertake a "major programme" of investment in 2016, mainly in its technology systems, Chairman Gavin Oldham said, which should improve the way the company interacts with customers.
"This investment will be reflected in the overall performance for the year but we expect to exit 2016 substantially stronger still and with the group firmly positioned for long term sustainable profitable growth," Oldham said.
Shares in Share were down 2.5% at 27.30 pence on Wednesday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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