Share PLC (LON: SHRE) Half year results to 30th June 2018

 

Three agreements have been reached, including with the Special Administrator of Beaufort Securities Limited, to acquire a combined total of c.38,000 customer accounts and over £1.5bn of assets under administration

The Beaufort Securities agreement relates to c.15,000 customer accounts

 

Financial

Revenues up 15% to £10.2m (H1 2017: £8.9m), a record six month high

 

Costs rose by £1.6m (18%) year-on-year, primarily relating to regulatory changes (largely MiFID II and GDPR) and increased transactional costs. Mitigating actions are expected to benefit the second half

 

Underlying1 profit after tax of £50,000 (H1 2017: £255,000).  Statutory loss after tax of £279,000 (H1 2017: profit of £13,000).  Statutory loss per share of 0.2p (H1 2017: 0.0p)

 

Assets under administration up by 18% to a record £5.0bn (H1 2017: £4.3bn)

 

Cash held on behalf of customers up by 19% to £426m (30 June 2017: £359m)

 

Balance sheet remains strong, with shareholders’ funds at £17.9m (H1 2017: £17.7m)

 

Operational

Continued investment in Digital Transformation Programme – innovations being delivered

 

Market-leading customer satisfaction levels – reflected in a number of awards, including ‘Overall Client Satisfaction’ award in 2018 Investment Trends UK Online Broking Report for the fifth consecutive year

 

New Business

Three agreements have been reached, including with the Special Administrator of Beaufort Securities Limited, to acquire a combined total of c.38,000 customer accounts and over £1.5bn of assets under administration

The Beaufort Securities agreement relates to c.15,000 customer accounts

 

Outlook

Benefits of these new acquisitions are expected to be felt from Q4 2018, and the Bank of England’s recent increase in the base rate will assist in raising interest income

 

Group’s trading performance remains encouraging and the flow of new business opportunities remains strong

 

The Board looks forward positively to the future and a return to sustainable and growing profitability

 

 

1 Excludes the impact of some items, in particular any large non-recurring items and share based payment charges as defined in note 6.

 

Richard Stone, Chief Executive, commented:

“These results show the positive progress the business continues to make. We continue to grow our own brand business as well as being seen as a ‘good home’ for customer books and a trusted partner for third parties. Strong revenue growth and assets now totalling £5bn for the first time are evidence of our progress and we are delighted that our service levels continue to be recognised by high profile industry awards. Today’s announcement of three acquisitions covering c.38,000 customer accounts is particularly encouraging, and we are especially pleased to welcome, in a few weeks’ time, customers of Beaufort Securities, who have endured a very difficult period since the collapse of that business in March. 

 

“We are also pleased with the advances we made with our Digital Transformation Programme, which underpins the Group’s long-term growth opportunity. The first half of 2018 was challenging in terms of the changes required to accommodate new regulations, principally MiFID II and GDPR, and the impact on customer service, with MiFID II adding ‘grit’ to the customer journey and lengthening many offline interactions.

 

“These regulatory changes have been a contributory factor in an increase in the Group’s cost base.  We have taken steps to mitigate this and we expect the benefit of these commercial changes (which took effect in July) to have a positive impact on the second half financials.

 

“Looking ahead, the future remains bright and we have plans to substantially increase the scale of the business, both organically and through acquisitions and partnerships. The Board continues to be encouraged by progress and looks forward positively to the rest of this financial year and beyond.” 

Read Full RNS Link


Linking Shareholders and Executives :Share Talk

If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.

Terms of Website Use

All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned

Tags: ,
WordPress Security