Octagonal PLC Trading Update (9920M)
October 20 2016 - 1:00AM
UK Regulatory
TIDMOCT
RNS Number : 9920M
Octagonal PLC
20 October 2016
20 October 2016
Octagonal plc
("Octagonal" or the "Company")
Trading Update
The Company is pleased to provide the following trading update
based on the unaudited interim figures for the six months ended 30
September 2016 for its wholly owned subsidiary, Global Investment
Strategy UK Limited ("GIS"); and the Board is extremely pleased
with the record revenues and net profit achieved.
GIS reports record revenue of GBP2.85 million and net profit of
GBP1.14 million for the 6 months to 30 September 2016 compared with
GBP2.09 million and GBP0.59 million, respectively, for the six
months to 30 September 2015. This represents an increase of 36% in
revenue and 93% in net profit compared with the same period in
2015. The business continued to show strong increases in net
margins from 28% to 40% over the comparable period whilst retained
cash stood at GBP2.6 million as at 30 September 2016.
Interim period highlights:
-- Cost efficiencies and margin improvement continues -
Significant work continues being undertaken to improve processing
efficiencies, client reporting and reducing frictional costs; as a
result net margins have improved from 28% to 40% over the
comparable period.
-- Positive US dollar impact - Positive impact of the strong
US$, and to a lesser extent Euro, on margins as revenues are over
90% in these currencies.
-- Additional services to clients - New Asset Management and
enhanced FX, Futures and Options trading services will go live to
existing clients in the near term. This continues the Company's
strategy of organically growing, offering a broader range of
services to clients where it sees long term value.
John Gunn, CEO, reports:
"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. It shows that markets have responded well post
Brexit.
The weakness in the pound has benefited GIS as our revenues are
by majority USD and to a lesser extent Euro and GBP.
Whilst our business remains subject to fluctuations in global
markets, we continue to be confident in the outlook for the
remainder of the year."
Grant Roberts, Chairman of Octagonal commented:
"The Board is extremely pleased with the strong results
delivered during the period. The continued margin improvement
achieved results from management's continued focus on seeking cost
efficiencies, productivity gains and organic growth. Sterling
weakness has also made a positive contribution to margins. The
Company continues to develop new business lines that will come
online in the near term and be offered to our existing client
base."
The consolidated accounts for Octagonal PLC to 30 September 2016
are required to be released by 31 December 2016 although the Board
hope to be in a position to do so well in advance of this deadline.
In addition, the Board notes the decline in the value of the
Company's non-core investment in Inspirit Energy Holdings Plc which
will be reflected in the consolidated accounts for Octagonal
PLC.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please visit www.octagonalplc.com or
contact:
+44 (0) 20 7048
Octagonal Plc 9400
John Gunn
Beaumont Cornish (Nominated Adviser and Broker)
corpfin@b-cornish.co.uk +44 (0) 20 7628
James Biddle / Roland Cornish 3396
This information is provided by RNS
The company news service from the London Stock Exchange
END
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