SCGL – Interim Results for the six months ended 30 June 2016

Shore Capital Group Limited

(“Shore Capital”, the “Group”, or the “Company”)

Interim Results for the six months ended 30 June 2016

Shore Capital, the independent investment group specialising in capital markets, principal finance and asset management, today announces its interim results for the six months ended 30 June 2016.

Financial highlights

  • Revenue of £18.0 million (2015: £25.9 million, £16.7 million excluding prior year impact of licence sales) up 7.8% excluding licence sales
  • Capital Markets revenues up 4.9% to £13.1 million (2015: £12.4 million) generating profit before tax of £3.0 million, with a net margin of 23.0%
  • Asset Management revenues up 7.2% to £5.2 million (2015: £4.9 million), generating profit before tax of £1.3 million, with a net margin of 25.0%
  • Profit before tax of £2.4 million (2015: £9.5 million)
  • Earnings per share of 6.5p (2015: 20.8p)

Operational highlights

  • Capital Markets advised on four IPOs and five secondary fundraisings, including the second largest IPO fundraising of H1 2016, the Main Market listing of Motorpoint Group plc, raising £100 million
  • Recent client wins included Dairy Crest Group plc; Chesnara plc; Stride Gaming plc; and Earthport plc
  • Puma Investments again achieved the largest limited life VCT fundraising of the tax year (over half of the total raised in its category) and significant inflows to its Private Client Investment offerings continued
  • Brandenburg Realty made its second acquisition in May 2016 – a €32 million commercial and residential portfolio

Commenting on the results, Howard Shore, Executive Chairman, said:

“In a first half overshadowed by uncertainty preceding Britain’s referendum on membership of the EU, it is pleasing to see the progress in our Capital Markets and Asset Management divisions, demonstrating the growth opportunity when market conditions improve.

“The market malaise following Britain’s vote to leave the EU appears to be short-lived helped by the speed with which a new Prime Minister and Cabinet was put in place and businesses and the investment community are starting to adapt to the new environment.

“Given our independent status we believe we have the flexibility to take advantage of the opportunities that Brexit will create. We hope that Brexit will provide an opportunity to remove some of the regulations that impede the UK’s ability to compete with the rest of the world.”

 

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SCGL – Interim Results for the six months ended 30 June 2016