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Shore Capital profit falls as costs rise

By Sean Farrell

Date: Thursday 21 Mar 2019

Shore Capital profit falls as costs rise

(Sharecast News) - Shore Capital's annual profit fell 11% as increased revenue failed to compensate for increased costs at the London stockbroker.

Pre-tax profit for the year to the end of December fell to £4.1m from £4.6m as revenue rose 3.4% to 43.3m.

Administrative costs rose by £3m to £38.9m. The company said the jump was caused by investment in its business, setting it up to expand when markets improve.

Stockbrokers have been squeezed by new EU rules, intense competition and a slowdown in business as Brexit has hit market confidence. Shore is buying its rival, Stockdale, in a deal set to complete on 31 March.

Howard Shore, the company's chairman, said: "We have continued to grow revenues whilst making targeted investments across our main operating divisions. This counter-cyclical strategy positions us to capture market share, further establishing our credentials as a significant presence in UK financial services."

Profit from capital markets business fell 22% to £4.1m as revenue at the division dropped 6.5% to £25.5m. Shore blamed difficult market conditions, particularly in the last quarter of the year. Asset management profit increased 5.5% to £3.2m as revenue rose 22.8% to £15.8m.


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