(Corrects paragraph 12 to show H1 dividend of 0.4 pence not 40
pence, FY dividend of 0.8 pence not 80 pence, 2012 dividend of
0.5 pence not 50 pence)
* H1 pretax profit rises 123 percent t 3.3 million pounds
* Interim dividend 40 pence/share, plans 80p full-year div
* Confidence returning to the economy - chairman
By Clare Hutchison
LONDON, Sept 16 Shore Capital expects
UK small cap companies to continue to outdo blue chips and
increase deal activity, it said on Monday, after a recovery that
helped the investment banking boutique more than double first
Britain's small cap index has risen 21 percent since
the beginning of the year, reaching its highest since 2007. That
compares with a 9 percent gain for the FTSE 100 index.
Shore Capital's Chairman Howard Shore said the small cap
revival is a result of the pickup in the UK economy and
government schemes such as scrapping capital gains tax on stocks
trading on London's AIM junior stock market.
The government has also allowed shares in AIM companies to
be placed in individual savings accounts (ISAs), financial
products that offer tax advantages for small savers.
The government has made growth of small and medium-sized
businesses a centrepiece of its plan to revitalise the country's
economy after a deep recession following the financial crisis.
"Confidence is beginning to return to the economy," Shore,
the company's founder, told Reuters.
"The healthier economy will create a backdrop of people
doing more deals and being more active, probably more IPOs as
Guernsey-based Shore Capital, which provides corporate
broking services and research to small and mid-sized firms,
earlier reported a rise pretax profit for the six months to
end-June of 3.3 million pounds ($5.2 million), 123 percent up
Revenue was unchanged from the year before at 17.8 million
Excluding the company's investment in German telecoms
business Spectrum/DBD, which is winding down its consumer
business and is separate from the company's day-to-day
operations, profit increased by more than 30 percent to 2.9
million pounds and revenue was up 4.1 percent at 17.2 million
Its equity capital markets business saw profit up 8.1
percent, while revenue from secondary commissions jumped 11
percent on the year. Its asset management division saw funds
under management rise to 0.91 billion pounds from 0.87 billion
pounds the year before.
Shore Capital reinstated the interim dividend, giving 0.4
pence per share back to investors. The company said it plans to
pay out the same amount in the second half, taking the full year
dividend to 0.8 pence per share compared with 0.5 pence in 2012.
Shore said the dividend policy reflects the board's
confidence in the business's prospects over the coming years.
Shore Capital shares, which trade on AIM and have climbed
more than 43 percent this year, were slightly firmer at 26 pence
at 0946 GMT.
($1 = 0.6303 British pounds)
(Editing by Louise Heavens)