Celebrate our 150th anniversary with fantastic savings on a joint magazine and IC Advantage subscription.
Shore Capital was not immune to worsening trading conditions in the second half of 2007, and chairman Howard Shore admits that trading conditions have become even more challenging since the year-end. Overall profits fell and the final dividend has been cut.
Advertising
On the asset management side, profits fell from £11.7m to £4.7m, with much of the decline reflecting a sharp fall in the share price of German real-estate investment, Puma Brandenberg (the group's largest holding). And while the Dawnay Shore Hotels chain has been successfully leased to Barcelo Group, a revaluation trimmed £29m from the value of the portfolio.
But the equity capital markets division fared better, with Shore Capital's diverse revenue streams - research, broking for institutional and professional clients, market making in Aim and small cap stocks - helping to push profits ahead by 15 per cent to £9.55m. And there was also a rise in the number of companies in which it makes markets from 1,150 to 1,270.
The Puma brand of venture capital trusts is being expanded with the launch of a European opportunities fund and two 'credit crunch' trusts designed to provide finance for fast growing small- and medium-sized companies unable to raise sufficient finance. Funds under management grew by 54 per cent to over £1.5bn.
Click here for a guide to the terms used in IC results tables
| SHORE CAPITAL (SGR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 35p | MARKET VALUE: | £104m | |
| TOUCH: | 35-36p | 12-MONTH HIGH: | 92p | LOW: 35p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 12 | |
| NET ASSET VALUE: | 26p | NET DEBT: | 4% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2003 | 2.05 | 0.4 | 0.43 | 0.23 |
| 2004 | 6.51 | 1.6 | 1.61 | 0.67 |
| 2005 | 12.7 | 3.1 | 3.07 | 0.88 |
| 2006 | 42.1 | 20.0 | 4.67 | 1.17 |
| 2007 | 38.8 | 14.3 | 2.91 | 0.88 |
| % change | -8 | -29 | -38 | -25 |
Ex-div: 2 Apr Payment: 21 May |
||||
Shore Capital enjoys a diverse revenue stream, but trading conditions are not expected to improve in the short term at least, which leaves the shares high enough.
Last IC View: Good value, 72p 7 Sep 2007
For more analysis of company results as they're released, go to www.investorschronicle.co.uk/results
Free access to financial data, charts, portfolio tools and more - registration is quick, secure and free!
Profit from IC share tips; discover the benefits of IC Advantage and sign up for a free trial.
© The Financial Times Limited 2010. All rights reserved. "Investors Chronicle", "FT" and "Financial Times" are trademarks of The Financial Times Limited. No part of these web pages may be reproduced or transmitted to or stored in any other website or other form of electronic retrieval system, without prior permission in writing from the editor.
Warning: Do remember, particularly if you are new to stock market investment that the prices of shares and other investments can fall sharply. You may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. This site is aimed at UK residents only. To read more please see our Important Warning
v6.2.10.5 running on www.investorschronicle.co.uk
