Howard Shore, head of the mini-investment bank and stockbroker Shore Capital, believes there are clear signs of economic recovery since the summer ended.
“Contacts and clients tell me there has been significant pick-up,” he said. “I’m bullish about the world economy particularly since [Federal Reserve chairman] Ben Bernanke’s intervention. I think people are acknowledging the saying, ‘It doesn’t pay to fight the Fed’.”
Shore Capital appeared to buck the trend of flaccid stock markets in its first-half numbers: profits and revenues were down on the same period a year earlier but up on the second half of 2011. Although profits were almost sliced in two from £4.3 million to £2.2 million on revenues down from £20.4 million to £17.8 million there was a huge improvement in broking profits between the latest six months and last financial year’s second half.
Howard Shore said: “We have managed to acquire a couple of very good salesmen and the reduction in broking capacity in the market as rivals have closed, merged or cut back has also helped.”
By contrast, private client broker Alexander David remained firmly in the red in the first half of the year as punters cut back on contracts-for-difference trading. Losses widened to £148,039 from £85,122 in the first half of 2011. Directors have delayed taking their salaries for the first half.
