Shore Capital Group is an independent investment group with three main areas of business: Capital Markets, Asset Management and Principal Finance (on-balance sheet investments). It has offices in Guernsey, London, Liverpool, Edinburgh and Berlin.
H118 results benefitted from the diversity in the group’s activities. Normal fluctuation in activity levels and the introduction of MiFID II meant lower revenue and profit for Capital Markets. However, a very strong performance from Asset Management (and lower central costs) more than made up the shortfall allowing both revenues (+6.5%) and pre-tax profit (+2.8%) to move ahead for the group. With a lower tax rate EPS increased by 11%. SGR has confirmed that it is in discussions with Stockdale Securities regarding a potential acquisition. Stockdale FY18 revenues were £11.4m and PBT £1.5m; it has c 60 corporate clients and was valued (September 2018) by its largest shareholder, Somers, at £7.5m.
Increased equity market volatility has created a more challenging background for SGR and particularly for Capital Markets with potential delays in equity issuance and M&A activity. Nevertheless, activity continues and, notably, Shore Capital was appointed as joint broker to Marks & Spencer (Dec). A resolution of some of the macro uncertainties could prompt a bounce-back in corporate activity. Asset Management appears well positioned to grow further and is looking to use its track record in private client tax-efficient products for institutional investors.