Share Plc, the parent company of stockbroker The Share Centre, announced its preliminary results to December 31st 2010. The company reported that revenue increased to £15.6 million (FY 2009: £14.1 million), operating profit increased to £3.0 million (FY2009: £2.2 million) and net profit increased to £2.3 million (FY2009: £1.7 million).
The increase in revenues was driven by growth in dealing commissions and fee income, which grew 18.3% during the year, buoyed by wider stock market appreciation. Shares market share by revenues (excluding the effect of the interest rate floor policy that expired in November 2010), increased to 5.62% from 4.76%. Adjusted EPS increased to 1.7p from 1.3p in FY2009.
I am questioning the accuracy of this report, I don't think the researcher has checked the facts.
Sharecentre is not an execution only broker, as anyone who has dealt with them knows. Furthermore, that is been the case for several years.
Pick up the telephone and dial this number; 01296 41 41 41. You will get the following menu;
- For dealing press 1
- 2 For customer support
- 3 For investment advice.
Next, check their website, www.share.com
The home page says "Access to plain speaking experts. A wealth of knowledge and experience." There is a direct link to;
'About Investing'
What is investing?
How to get started
Types of stock market investments
Risk
Tax
Dos and don'ts
'About Funds'
What are funds?
Why invest in funds?
Common types of funds explained
Asset classes
Investment styles
What to consider when buying funds
'About Trading'
Trading different types of investments
Funds and Investment Trusts
Bonds and Gilts
How to formulate an investment strategy
Top ten tips for buying shares
Things to consider when selling shares
These headings show how comprehensive their help and advice is.
Then there is the small matter of cost;
Normal brokerage is 1%, but there is a vast saving available for anyone whose deals exceed £10,000 per annum. It is called the “Trader Option” and costs an annual charge of under £100 inc VAT. Once this is started, deals cost only £7.50 each irrespective of size, and even that can be further reduced for Share Plc shareholders. My investment club has been with them since we were founded 13 years ago, and their service has been superb. For example, we had about £20,000 in cash when the market was falling in 2008 so I asked Sharecentre for help, they advised a money fund that paid over 5%.
My opinion; Share Plc is a very well managed business with a good record of growing profit. I have persuaded my club to start buying its equity, despite the 1% dividend yield, we mostly buy shares with a yield over 4% but feel this broker has a good future.
