Shore Capital Group Limited – 2010 Preliminary Results Announcement (Excerpt)

Hamilton, Bermuda – 25 March, 2011 – Shore Capital Group Limited (the ‘Company’; Ticker: SGR.BH), the investment bank focused on equity capital markets, alternative asset class fund management and principal finance, releases its preliminary results for the year ended 31 December, 2010.   

Financial Highlights*

·         strong performance in 2010, despite tougher conditions than in the recovery year of 2009.

·         profit from operating businesses of £10.6m (2009: £11.0m). Pre-tax profit of £8.4m (2009: £12.5m).

·         comprehensive earnings per share of 2.00p (2009: 3.31p, included one-off gain on PBL shares held).

·         dividend per share of 0.625p (2009: 0.625p per share); total for 2010 0.875p (2009: 0.875p per share).

Operational Highlights

·         continuing strong market-making performance, leveraging leading small cap market-making position.

·         excellent performance from Puma VCTs, new VCT launched.

·         successful diversification of the ECM business into the resources sector, both oil and gas and mining.

·         major gain at St Peter Port from flotation of Brazilian oil explorer HRT (current cap over US$5bn).

·         new principal finance investment in German telecoms business in 2011.

*excluding the contribution from PBL’s business, which is no longer part of the continuing operations of the Group

Howard Shore, chairman of Shore Capital, said: "2010 repeated the strong operating performance of the previous year.  We have had a good start to 2011, particularly in our ECM business.  The market-making division continues to perform well and corporate activity has increased, partly as a result of our move into the resources sector.  The asset management business has been enhanced by the strong performance of the Puma VCTs, Puma Sphera and St Peter Port Capital. 

“We benefit from a diverse range of business streams and a strong balance sheet which gives us the flexibility to be able to undertake acquisition opportunities when they arise.  We are particularly excited by the recent purchase of 58 per cent of DBD by our new subsidiary, Spectrum Investments.

I am pleased to report our results for 2010. Following a year of recovery by securities markets in 2009 from which we benefited strongly, 2010 saw a return to volatile markets.  Investor sentiment became more negative during much of the year, including the hiatus period of the election in the UK and the sovereign debt crisis in Europe.  This made business conditions more difficult, particularly affecting primary market activity.  We are less dependent upon this than some of our competitors and our diverse business mix helped us achieve another good financial performance for the Group.  In particular, both our operating divisions, Equity Capital Markets (“ECM”) and Asset Management, largely maintained their performance in 2010 compared to 2009.

We undertook a corporate reorganisation of the Group in March 2010 and these results cover the period for the new holding company following the corporate re-organisation to 31 December 2010, together with the earlier period during which Puma Brandenburg Limited (“PBL” or “Puma Brandenburg”) was part of the Group. However, as a consequence of the de-merger we have presented, in accordance with accounting rules, the contribution from Puma Brandenburg separately from the continuing operations of the Group.

The full text and financial information of this release is available on the Company’s website at www.shorecap.gg

For more information:

Shore Capital Group plc

Howard Shore                                                 +44 (0) 20 7468 7911