Shore Capital Group results benefit from diversified model

Shares in Shore Capital Group rebounded from their lowest level in two years after the stockbroker lifted full year profits 40% on robust revenues.

Guernsey-headquartered and with its London office in the West End, ShoreCap also operates asset management and principal finance divisions which allowed the group to grow sales 3.4% to £42m in calendar 2015 despite the challenging financial markets.

Profits before tax rose 41% to £11.7m with earnings per share up 25.5% to 27.1p.

While the capital markets division saw sales fall 22.5% to £23.4m and PBT crash 51.8% to £4.7m, despite being the most successful AIM fundraiser during the year and winning its first FTSE 100 client in Morrisons Supermarkets, strong performances from both other arms helped counterbalance this.

Driven almost entirely by the sale of a number of radio spectrum licences in Germany, the Principal Finance division posted £9.1m revenue and generated PBT of £5.1m after the previous year's loss.

Revenue from Asset Management was boosted by successes in private client investments and further development of institutional advisory services, lifting sales 12.1% to £9.5m and PBT 11.4% to £2.7m.

Executive Chairman Howard Shore said: "In a year when markets have faced considerable uncertainty - and continue to do so - the strength of our diversified business has been evident, enabling the group to increase revenues and profitability whilst making targeted investments and remaining cost-conscious."

He said uncertainties have carried over from 2015 into the first quarter of 2016, but the company's "liquid balance sheet and robust business model enables us to take advantage of opportunities as they arise".