Interactive Investor has doubled the number of new customers in the first-quarter, pushing net revenue up 61 per cent.
The online investment platform reported net revenue of £31.1m for the first-quarter, up from £19.3m in the same period last year. Profit before tax grew 55 per cent from £5.8m to £9m.
The strong figures are in part because Interactive Investor doubled the number of new customers from 5,130 in the first quarter of 2019 to 10,607 in this period. Net new business in the period was also up 141 per cent to £1.02bn.
Interactive Investor maintains it will remain profitable during the coronavirus pandemic. The group derives approximately 30 per cent of its revenue from monthly fee income, which is not dependent on trading volumes, market movements or interest rates.
Chief executive Richard Wilson said: “Fee revenue covers around 54% of our expense base meaning that the company will remain profitable even in a low interest rate or reduced trading volume environment.”
“We believe that the Group’s ability to support our customers remotely combined with our resilient operating model and balance sheet strength means we are well placed as a safe harbour for customers and shareholders in these uncertain times,” he added.
In February, Interactive Investor reached an agreement to acquire The Share Centre, in a cash and shares deal worth around £61.9m.
In May last year, the two companies confirmed they were in early stage talks about a possible takeover, but the investment platform later decided against launching a bid.
Under the terms of the deal, Share investors will receive 4.1p in cash and a proportion of a new share of Interactive Investor parent II for each Share share.
In a statement today, Wilson said: “The firms’ shared values and combined strengths reinforce ii’s position as a leader in the retail investment services marketplace.”