Stockbroking dealing commissions rose 41% helping Share secure 11% market share
Companies: Sharetronic Data Technology Co. Ltd. Class A
The Group behind independent stockbroking service The Share Centre said on Monday that its market share had increased to 11% in the first quarter after substantial levels of trading on its platform resulted in £4.1m in revenue, a record for the small-cap.
Share Plc (SHRE) reported record revenues up 20% to £4.1m and saw assets under administration grow 6% to £4bn. Q1 trading was supported by buoyant dealing volumes and higher customer numbers following the addition of books of client accounts in 2016.
"This reflected strong asset flows as well as the rise in stock market values. The Group's performance is also ahead of its peer group, with its market share reaching record highs: excluding interest, the Group's market share rose to 11%."
During the period the Company launched its new fund offerings, a Lifetime ISA product, and completed the transfer of the Invesco Perpetual accounts. It also completed the disposal of Sharefunds Ltd.
Dealing commission made up just over half of Group revenues, increasing by 41% compared to the first quarter of last year. Share said this was a considerable outperformance compared to its peer group which averaged 8% growth in dealing commissions.
Fee income growth was far more modest, growing 7% and accounting for 42% of revenues.
CEO Richard Stone said the firm's results showed it was outperforming its peers on main metrics:
"...the Company's revenue market share, excluding interest, reaching a record high of 11%. This pleasing performance reflects the progress we are making in both account acquisition and major new partnerships, as well as the high customer service levels we offer.
He added that he felt the firm's prospects for 2017 were "very" positive, remaining well positioned for year-on-year revenue and earnings growth.
