Annual reports


2016 Results

View the latest Annual Report

“The Group’s revenue market share over the year, excluding interest, also hit a record high and we won eight industry awards, including Investment Trends’ prestigious award for ‘Overall Client Satisfaction’ for the third consecutive year.”

HIGHLIGHTS

FINANCIAL

  • Results slightly ahead of revised market expectations in a year of major investment
  • Revenue market share excluding interest (*) reached a record high of 9.85% (2015: 9.39%)
  • Revenue up by 4% to £14.6m (2015: £14.1m).
  • Excluding interest income, revenue grew by 8% to £13.8m (2015: £12.8m). - commission income rose to a record £7.0m (2015: £6.4m) - fee income grew to a record £6.8m (2015: £6.4m) - interest income reduced to £0.8m (2015: £1.3m)
  • Assets under administration increased to a record £3.7bn (2015: £2.8bn)
  • Profit before tax of £1.0m (2015: £0.9m), including a £2.1m one-off net gain (2015: £1.7m) from the partial sale of shares in the London Stock Exchange Group plc
  • Underlying earnings of £4,000 (2015: £555,000)
  • Underlying (**) basic and diluted earnings per share of 0.0p (2015: 0.4p). Basic and diluted earnings per share of 0.5p (2015: 0.5p)
  • Final (and total) dividend proposed of 0.25p per share (2015: 0.74p)
  • Balance sheet remains strong, with net cash of £11.4m (2015: £11.7m)
  • Shareholders’ funds of £17.7m or 12.3p per share in issue (2015: £18.7m, 13.0p per share)

OPERATIONAL

  • Major programme of investment in IT systems ongoing
     - enables innovation in customer engagement and enhanced customer services
  • Customer satisfaction remains at very high levels - eight industry awards for customer service, including prestigious Investment Trends award for highest ‘Overall Client Satisfaction’ - retained for third consecutive year
     - first to market with Flexible ISA functionality
  • Major new partnerships and account acquisitions agreed with Computershare, Barclays Bank plc and Invesco Perpetual
     - full benefits to come through in 2017

OUTLOOK

  • After a year of significant investment, 2017 is expected to be a year of further investment, transformation and increased delivery
     - 2017 has started well and the Group is well positioned for revenue and earnings growth

(*) the peer group comprises: Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing, HSBC Stockbrokers, Saga Personal Finance Selftrade and TD Direct Investing
(**) excludes the impact of some items, particularly any large non-recurring items, as defined in Note 7.