Curtis Banks Group PLC (AIM:CBP) held its interim dividend as it maintained revenues and cash generation steady in the first half of the year.
The SIPP provider reported group revenue of £32.2mln compared to a restated £32.3mln a year ago, with the core SIPP business growing 1.9% with strong underlying growth in mid and full SIPP products of 7.1%.
Adjusted profit before tax decreased 12.4% to £6mln and a loss before tax of £5.3mln was reported due to a £9.8mln goodwill impairment charge relating to the Dunstan Thomas fintech business.
The half-year dividend was maintained at 2.5p, with net cash on the balance sheet standing at £6.9mln at the end of June.
Surplus capital stood at circa £12mln above the £15mln requirement.
“Against a challenging macro-economic backdrop, Curtis Banks has demonstrated the resilient nature of its business model,” said executive chairman David Barral, adding that the group’s fixed fee model provides protection against market volatility and inflation.
“Although our FinTech segment delivered lower than expected results against challenging market conditions, we are positive on the medium-term outlook for Dunstan Thomas to grow its pipeline, while continuing to support the group's wider technology strategy.”
Barral also noted continued improvement in service levels, leading to a 50% reduction in complaints and a full percentage point improvement in the attrition rate.
“Despite headwinds from market conditions, Curtis Banks has a strong balance sheet with a material regulatory capital surplus that provides good dividend cover, as well as benefitting from additional upside from rising interest rates. My priority is now to maximise the potential of the core SIPP business while unlocking improved operating performance across the Group and building a high-performing culture.”