Share Plc, the independent retail stockbroker, announced that its Q3 2010 market share increased to 7.23% by total revenue (2009: 5.83%). The data was compiled by Compeer Ltd., an independent provider of industry benchmarking data.
According to the Compeer survey, Share performed relatively well in all three of its main revenue streams ,with dealing commission decreasing by 7%, fee income increasing by 24%, and interest income increasing by 21% respectively vs. Q3 2009. For Share's peer group, dealing commission decreased by 21%, fee income increased by 29% and interest income increased by 4%.
Share outperformed its peer group with respect to dealing commissions. Though trading volumes were down vs. 2009, Share's corresponding drop in commissions was significantly less than the peer average. Share is less dependent on dealing commissions than its peer group as a whole ( 35% vs. 67% of total revenue) and continues to maintain its strategy of having a more even split between the three revenue streams than the rest of its peers.
Share's interest income was protected in Q3 by its interest rate floor policy, which guarantees interest rates on the company's deposits at LIBOR minus 3.5%. However, this policy ends on November 1st, 2010. With interest rates at their current historical lows, Share's interest income will undoubtedly be affected (at least in the short term). Share's Q3 2010 market share was 6.09% after stripping out the effect of the interest rate floor.
I have been Chairman of the Dripping Spring Share Share Club since it was founded in April 1988. Over that time we have outperformed the FTSE-100 index by about 45%.
Share Plc have been our stockbrokers since the beginning. We are delighted with their excellent service, which comes at very low cost.
Commissions are 1% for normal infrequent buyers. The club votes for several trades every month, so we joined their Trader scheme, and pay their £7.50 commission per deal, irrespective of size.
Their website is the best I have seen and is very easy to use. We have noted their steady increase in profits, eps and dividends. Knowing this is a very well run business, we have started adding Share Plc shares to our portfolio.
MadDutch.
