Shore Capital takes Brexit in its stride in first half

Shore capital, an independent investment group specialising in capital markets, principal finance and asset management, reported an increase in revenues across its operations in the first half despite the shock from the Brexit vote.

Executive chairman Howard Shore 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 group’s total revenue, excluding licence sales, rose by 7.8% to £18m, however profit before tax fell to £2.4m compared to £9.5m in the previous year.

The firm’s capital markets division saw revenues rise 4.9% to £13.1m, generating profit before tax of £3m and a net margin of 23%.

The division advised on four initial public offerings (IPOs) and five secondary fundraisings. The second largest IPO fundraising of the first half was the main market listing of Motorpoint Group which raised £100m.

The firm’s asset management division’s revenues rose 7.2% to £5.2m, generating profit before tax of £1.3m and a net margin of 25%.

The company’s won a variety of clients during the period including Dairy Crest, Chesnara, Stride Gaming and Earthport.

Accoridng to management, Puma Investments achieved the largest limited life venture capital trust (VCT) fundraising of the tax year yet again. “Significant” inflows to its Private Client Investment offerings also continued.

The company’s German residential fund Brandenburg Realty made its second acquisition in May 2016 increasing their commercial and residential portfolio to €32m.

"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," said Shore.

Earnings per share fell to 6.5p from 20.8p in 2015. The share price fell 2% to 245p at 1138 BST on Tuesday.