LONDON (Alliance News) - Share PLC Monday said it has seen good revenue growth over the third quarter, with a good start to fourth quarter trading, as a result of good momentum in the stockmarket on the back of the high-profile initial public offering of Royal Mail PLC.
The operator of The Share Centre Limited, an independent UK stockbroker, said continuing revenues in the third quarter of 2013 were 14% higher than in the comparable period last year, while overall revenues, which include revenues from the group's scaled-back Sharefunds operations, showed 9% growth year-on-year.
Revenues were up as a result of a 30% increase in dealing commission for the group compared with the third quarter of 2012, as well as a 1% increase in account fee income, Share said.
However, interest and other income declined 11%, which the company blamed on a reduction in interest rates as a result of the UK government's Funding for Lending and Help to Buy schemes.
The stockbroking holding company said its strong performance came about as overall share prices recovered from their fall in June, and investor interest and market activity was stimulated by AIM shares being allowed into individual savings accounts and expectations of the Royal Mail IPO.
"Trading at the start of Q4 has begun well and the group expects investor sentiment to remain buoyed with improving market values and high profile IPOs, including the Royal Mail and Merlin Entertainments, stimulating trading activity," the company said in a statement, noting last Monday's news that private equity giants Blackstone and CVC Capital Partners have proposed to float Merlin Entertainments PLC, the owner of assets including Madame Tussauds, Legoland and Alton Towers.
Meanwhile, Share, citing an independent survey by Compeer Limited, which benchmarks the business performance of wealth managers, private banks and stockbrokers in the UK, said its market share was up to 7.33%, from 6.95% last quarter, against a number of its competitors, including Alliance Trust Savings, Barclays Stockbrokers, Equiniti, Halifax Sharedealing (HBoS), HSBC Stockbrokers, NatWest Stockbrokers (RBS), Saga Personal Finance, Selftrade and TD Waterhouse Investor Services Europe.
Share PLC shares were Monday quoted at 20.84 pence, down 0.8%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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