Share Plc (LON:SHRE) first half results were marked by higher revenues and costs than expected, while assets under administration have continued to grow and the digital transformation programme has progressed further both behind the scenes and in the client interface. Share’s credibility as a partner or purchaser of books of business is underlined by agreements to three further transactions that are set to scale the business significantly. This in turn should help underpin the geared improvement in profits required to drive the value of the business.
H118 results
Assets under administration (AUA) increased by 18% to £5bn and revenue by 15% compared with the same period last year. The largest contributor to revenue growth was commission income against a somewhat mixed market background, but with the benefit of higher AUA and a full contribution from Computershare services, which began during the first half last year. Interest income earned on client cash balances rose sharply from a depressed level. Costs were affected by the need to deal with costs associated with regulatory changes, including MiFID II particularly. As a result, normalised post-tax profit was reduced from £0.255m to £0.05m, but measures have been taken to mitigate the increase in costs, and service levels for customers have returned to normal levels so the starting point for the second half would seem to be much more promising.
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