8 May 2017 – final results
Solid interim results have been reported by the independent stockbroking group despite the lack of new issues. Group revenues fell 8% to £52.4m although the sharp decline in revenue from corporate broking, which fell by 26% to £29.0m, was almost recovered by the increase in revenues in the equities business which rose 31% to £23.4m. Overall pre-tax profits declined by 38% to £10.5m and earnings per share fell 34% to 8.0p. However, as and when the new issue market picks up the corporate broking business will pick up and given the high level of operational gearing enjoyed by the business, increased revenues will quickly feed through to increased profits. The group maintains significant cash balances of £71.2m and we maintain our recommendation of BUY.