* Pretax profit jumps to 3.7 mln stg
* Final dividend 0.5 pence per share
* ECM volumes recover
By Tommy Wilkes
LONDON, March 19 British investment banking
boutique Shore Capital saw a jump in pretax profit last
year as recovering financial markets encouraged firms to raise
funds and seek deals.
After years of subdued activity due to the financial crisis,
London markets have seen a resurgence in business, particularly
of firms looking to sell shares amid a rise in the benchmark
FTSE-100 index to five year highs.
Shore, which provides corporate broking services and
research to small and mid-sized firms, said on Tuesday pretax
profit for the 12 months to Dec. 31 rose to 3.7 million pounds
($5.6 million) from 400,000 a year earlier.
Corporate finance and corporate broking revenue rose by a
third while secondary commissions in its equity capital markets
business grew 15 percent.
Founder Howard Shore said firms were eager to use their
cash, although he remained cautious about a further market
recovery given the potential for a flare-up of economic
instability in the debt-laden euro zone.
"The companies that have survived the recession are in a
much healthier state and they've got an increasing appetite to
do things," he told Reuters.
Guernsey-headquartered Shore said it had also increased its
stake in German telecoms business Spectrum Investments to 59.26
percent since the year end.
Funds under management in Shore's asset management business
dropped to 870 million pounds from 1.21 billion pounds a year
earlier, meanwhile, amid a restructuring of the division.