Octagonal's GIS reports a rise in revenue as it gaines from weak sterling

AIM-listed financial services investment company Octagonal’s subsidiary Global Investment Strategy reported an record revenue for the first half of the year as the company benefited benefited from the weak pound.

In a trading update for the six months ended 30 September, GIS reported a record revenue of of £2.85m, a 36% increase from the same period last year, while net profit rose 93% to £1.14m.

The net margin increased to 40% from 28% due to an improvement in processing efficiencies, client reporting and a reduction in frictional costs, as retained cash stood at £2.6m at the end of September.

GIS added additional services to clients with new asset management and enhanced foreign exchange, futures and options trading services are to go live to existing clients in the near term.

Chief executive John Gunn said: "This is a good set of results for the half year as the second quarter is usually impacted by reduced trading volumes over the summer period. It shows that markets have responded well post-Brexit."

He said the weakness in the pound benefited GIS as its revenues are by majority in dollars and to a lesser extent in euros and sterling, and maintained that while its business remains subject to fluctuations in global markets, it continues to be confident in the outlook for the rest of the year.

Chairman Grant Roberts added: "The board is extremely pleased with the strong results delivered during the period. The continued margin improvement achieved results from management's continued focus on seeking cost efficiencies, productivity gains and organic growth.”

Shares in Octagonal were up 10.82% to 2.05p at 0933 BST.