Shore Capital raises dividend after return to the black

Published on Tuesday 9 March 2010 20:17

BOUTIQUE investment bank Shore Capital swung to a full-year pre-tax profit as trading bounced back following the previous year's losses.

Shore – which has a team of six analysts in Edinburgh, as well as offices in London, Liverpool, Guernsey and Berlin – posted a 14.6 million pre-tax profit for the year to 31 December, compared with a deficit of 1.7m in 2008.

Revenue from its equity capital markets and asset management businesses rose by 47.6 per cent through "organic growth", with group turnover up 98 per cent to 39m, returning to 2007 levels.

Shore recommended a final dividend of 0.625p, taking the total dividend to 0.875p, compared with 0.3p a year ago.

The Aim-listed company's net assets received a one-off 63.1m boost following the acquisition of German property fund Puma Brandenburg in September.

The group yesterday unveiled plans to list Puma on the Luxembourg stock exchange as a property investment company.

Chairman Howard Shore told The Scotsman: "2009 was a terrific year. Even aside from the acquisition, the underlying business performed well. It's really firing on all cylinders. Over the past decade, we've generated more than 40 per cent per annum growth in our total return to shareholders. That makes us top of our peer group. If we can do that again then I will be a very happy man."

But Shore, an outspoken Tory supporter, warned that the next UK government must not strangle the UK's financial services sector.

He added: "I'm very much in favour of cutting public spending straight away. I think there's a huge amount of waste.

"Our borrowing is way too high, and the sooner we take the pain then the faster the economy can get back to medium and long-term growth.

"In terms of the City – and in that I mean financial centres like Edinburgh, not just London – we need to nurture growth. Financial services is our number one industry. We don't want to kill the goose that lays the golden egg."

Shore Capital opened its Edinburgh office in December 2008 after bringing in the Landsbanki Securities analysts team of Richard Sloss, Andrew Keith and David Phillips.

Shares in Shore Capital rose 8 per cent, or 2.75p, to end the day at 36.5p, valuing the business at about 85m.