Merchant Securities underlying profit up 80% in H1

Financial services firm Merchant Securities Group plc reported underlying profit before tax up by 80% to £0.524m from £0.289m for the six months to September 30.

Revenue was up by 17% to £3.84m from £3.27m.

Underlying earnings per share rose 79% to 1.11p from 0.62p.

After taking non-recurring costs into account, the result for the period was a net loss before tax of £0.242m, against a 2009 profit of £0.123m.

The group said private client services had had a particularly strong performance. Advisory and discretionary funds under management and administration increased by 35% to £205m.

The private client area and corporate finance division showed revenue growth of 17% and 27% respectively. Corporate finance completed 13 transactions during the period, including three AIM admissions.

CEO Patrick Claridge said, 'During the first half, we completed the integration of our securities and corporate finance activities and moved to larger offices which provide us with ample scope for our continuing expansion.

'Looking ahead, I remain confident about our growth prospects as we pursue our expansion plans. Alongside our ambitions to build the business organically, we continue to look for suitable acquisitions.'

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