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Share pleased with performance ahead of Interactive Investor combination
4th Mar 2020 10:08
(Sharecast News) - Independent retail stockbroker Share reported "further good progress" against a challenging trading backdrop in its preliminary results on Wednesday, with assets under administration up 25% to a record ?6.1bn at year-end.
The AIM-traded firm said revenue was up 7% to a record ?22.6m for the year ended 31 December, which was helped by the acquisition of customer accounts.
It said commission income slipped to ?10.0m from ?10.9m, while fee income grew by 19% to a record ?9.3m, and interest income increased 41% to ?3.3m reflecting the full-year effect of bank base rate increases.
Share's revenue market share excluding interest stoof at 3.68%, down from 3.78% year-on-year.
The company's reported loss before tax was ?0.13m, widening from ?0.02m, including ?0.6m of one-off corporate costs.
Its reported EBITDA rose 83% to ?0.9m, while its underlying EBITDA was 92% higher at ?2.3m and its underlying earnings rose 70% to ?1.1m.
Underlying basic earnings per share increased to 0.8p from 0.4p), while reported basic losses per share widened to 0.1p from 0p.
Share described its balance sheet as "strong", with shareholders' funds standing at ?20.4m or 14.2p per share, up from ?19.5m or 13.5p per share in 2018.
Cash balances increased at year-end to ?12.7m, from ?9.0m at the start of the year, following the sale of the majority of the group's stake in London Stock Exchange Group.
As it announced on 17 February, Share's board has agreed a recommended offer for the company with Interactive Investor, which was now progressing through legal, shareholder and regulatory approvals.
The company said that given that agreement, no final dividend was being proposed, after last year's final distribution of 0.55p per share.
On the operational front, Share reported a continued expansion of its customer base, through a strategy of partnerships and account acquisitions, with around 13,000 customer accounts from JP Morgan transferred in the second half.
It also completed its digital transformation programme, following the release of additional functionality and enhancements to the new website and app.
Share's net promoter score increased to 54 from 52 at the end of 2018, as the firm won a number of customer service awards in the year, including 'Best Customer Service' at the Share Awards, and 'Best Online Stockbroker' for the fifth successive year in the Personal Finance Awards.
"Against a difficult market backdrop, 2019 was another year of good progress for Share operationally and strategically," said chairman Gavin Oldham.
"The group recorded new milestones, including record revenues, our highest level of assets under administration and further awards for our market-leading customer service."
Oldham said that if, as the board expected, the recommended offer for Share from Interactive Investor completed, the combination of the two companies would create a "dynamic force" for personal investors.
"With our shared vision, strategy and values, this is the strategic transformation of our business to which I referred at our annual general meeting in June.
"We therefore look forward to helping many more people enjoy straightforward investing in the years ahead, and to continuing to encourage the transition to a more egalitarian form of capitalism."
The AIM-traded firm said revenue was up 7% to a record ?22.6m for the year ended 31 December, which was helped by the acquisition of customer accounts.
It said commission income slipped to ?10.0m from ?10.9m, while fee income grew by 19% to a record ?9.3m, and interest income increased 41% to ?3.3m reflecting the full-year effect of bank base rate increases.
Share's revenue market share excluding interest stoof at 3.68%, down from 3.78% year-on-year.
The company's reported loss before tax was ?0.13m, widening from ?0.02m, including ?0.6m of one-off corporate costs.
Its reported EBITDA rose 83% to ?0.9m, while its underlying EBITDA was 92% higher at ?2.3m and its underlying earnings rose 70% to ?1.1m.
Underlying basic earnings per share increased to 0.8p from 0.4p), while reported basic losses per share widened to 0.1p from 0p.
Share described its balance sheet as "strong", with shareholders' funds standing at ?20.4m or 14.2p per share, up from ?19.5m or 13.5p per share in 2018.
Cash balances increased at year-end to ?12.7m, from ?9.0m at the start of the year, following the sale of the majority of the group's stake in London Stock Exchange Group.
As it announced on 17 February, Share's board has agreed a recommended offer for the company with Interactive Investor, which was now progressing through legal, shareholder and regulatory approvals.
The company said that given that agreement, no final dividend was being proposed, after last year's final distribution of 0.55p per share.
On the operational front, Share reported a continued expansion of its customer base, through a strategy of partnerships and account acquisitions, with around 13,000 customer accounts from JP Morgan transferred in the second half.
It also completed its digital transformation programme, following the release of additional functionality and enhancements to the new website and app.
Share's net promoter score increased to 54 from 52 at the end of 2018, as the firm won a number of customer service awards in the year, including 'Best Customer Service' at the Share Awards, and 'Best Online Stockbroker' for the fifth successive year in the Personal Finance Awards.
"Against a difficult market backdrop, 2019 was another year of good progress for Share operationally and strategically," said chairman Gavin Oldham.
"The group recorded new milestones, including record revenues, our highest level of assets under administration and further awards for our market-leading customer service."
Oldham said that if, as the board expected, the recommended offer for Share from Interactive Investor completed, the combination of the two companies would create a "dynamic force" for personal investors.
"With our shared vision, strategy and values, this is the strategic transformation of our business to which I referred at our annual general meeting in June.
"We therefore look forward to helping many more people enjoy straightforward investing in the years ahead, and to continuing to encourage the transition to a more egalitarian form of capitalism."