Octagonal (OCT)

 

LSE:OCT: Trading Update

Octagonal

20 Oct 2016 07:00:08

Octagonal PLC

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 £2.85 million and net profit of £1.14 million for the 6 months to 30 September 2016 compared with £2.09 million and £0.59 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 £2.6 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:

 

Octagonal Plc

+44 (0) 20  7048 9400

John Gunn

 

 

 

Beaumont Cornish (Nominated Adviser and Broker)

[email protected]

James Biddle / Roland Cornish

+44 (0) 20 7628 3396

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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