Shore Capital’s share price fell two per cent this morning after the broker reported falling profits in the first half of the year.
But executive chairman Howard Shore said the company can benefit from the EU referendum result, with Brexit providing the opportunity to remove certain regulations.
The company’s turnover came in at £18m, down from £25.9m in the same period in 2015. But the 2015 figure was £16.7m excluding the impact of licence sales.
Shore said its capital markets revenues were up 4.9 per cent to £13.1m, while its asset management turnover was up 7.2 per cent to £5.2m.
Pre-tax profit was reported to be £2.4m, down from £9.5m.
Why it’s interesting
Executive chairman Shore was a backer of the Leave campaign in the run-up to the EU referendum.
And, despite the company’s share price falling from 300p on 23 June to 245p today, he appeared excited about the opportunities Brexit can bring.
What the company said
In a first half overshadowed by uncertainty preceding Britain's referendum on membership of the EU, it is pleasing to see the progress in our capital markets and asset management divisions, demonstrating the growth opportunity when market conditions improve.
The market malaise following Britain's vote to leave the EU appears to be short-lived, helped by the speed with which a new Prime Minister and cabinet was put in place and businesses and the investment community are starting to adapt to the new environment.
Given our independent status we believe we have the flexibility to take advantage of the opportunities that Brexit will create. We hope that Brexit will provide an opportunity to remove some of the regulations that impede the UK's ability to compete with the rest of the world.