Shares in Fiske (LON:FKE) were sitting higher on Tuesday after the stockbroking and investment management company swung to a half-year profit.
In the six months to 30 November 2016, the AIM-listed group achieved pre-tax profit of £19,000 after a loss of £662,000 in the same period a year earlier. Total revenue rose 15% to £1.4mln from £1.2mln on the back of significant investment in a new front and back office software platform.
Fiske’s operating loss was also reduced in the first half by 85% to £109,000 from £708,000 in 2015.
Fee revenues improved, driven in part by the integration of its individual savings accounts business onto its new software platform.
The growth came despite initial volatility in London’s financial markets following the UK’s vote to leave the European Union last June. “Initially there was a sharp fall after the Brexit vote but this was fairly swiftly followed by a strong recovery with the market remaining buoyant after the period end,” Fiske explained.
Its holding in Belgium-based financial services firm Euroclear was supported by a weaker pound after the Brexit vote, reporting a strong operating performance in fiscal 2016.
Meanwhile, Wall Street outpaced London markets, particularly after the election of Donald Trump as US President in November. Trump’s promises of looser regulations and lower taxes boosted US equities, with the Dow Jones Industrial Average breaking past the 20,000 point level.
The company said it will not pay an interim dividend.
Shares rose 9.96% to 54.98p.