Octagonal 'extremely pleased' as it reports record revenue and profits
Octagonal
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09:30 20/01/21
Octagonal updated the market on its trading on Friday, based on the unaudited interim figures for the six months to 30 September for its wholly-owned subsidiary, Global Investment Strategy UK, saying it was “extremely pleased” with the record revenues and profits achieved.
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The AIM-traded firm said GIS reported record revenues of £3.35 and profits of £1.6m for the six months to 30 September, compared with £2.85m and £1.14m respectively for the six months to 30 September 2016.
That represented an increase of over 17.5% in revenue and 40% in net profit, while the business reportedly continued to show increases in net margins from 40% to 47.5% over the comparable period.
Cost efficiencies and margin improvement continued during the period, the board said, with “significant work” being undertaken to improve processing efficiencies, client reporting and reducing frictional costs.
Corporate finance activities also made a positive contribution in the period for the first time.
In addition, the company also announced that, further to the recent approval from shareholders at the AGM, it filed documents with the court to reorganise its share capital with a view to making a dividend distribution in the future.
The company said it would provide a further update on that in due course.
“This is a good set of results for the half year as the second quarter is usually impacted by reduced trading volumes over the summer period,” said chairman and CEO John Gunn.
“We also managed to improve revenues and profits in spite of the negative impact of a slightly strengthened pound as our revenues are by majority dollar and to a lesser extent euro and sterling denominated.”
Gunn said it was the first time the company saw its corporate finance activities beginning to make a positive contribution to revenues and profits.
“We will naturally continue to develop these opportunities, although there is no certainty of maintaining these levels of revenue, which were below 10% of total revenues for the period.
“Whilst our business remains subject to fluctuations in global markets, we continue to be confident in the outlook for the remainder of the year.”
Gunn added that Octagonals’ application for a Hong Kong license continued, and the board would update shareholders when there were “meaningful” developments.”
“We also shortly expect to soft launch the SynerGIS Bond offering inviting depositors to pre register. Again we will make a separate statement at the time.
“The consolidated accounts for Octagonal to 30 September are required to be released by 31 December although the board hope to be in a position to do so well in advance of this deadline.”