Shore Capital - Preliminary 2012 Results Announcement (Excerpt)

Hamilton, Bermuda – 19 March, 2013 - Shore Capital Group Limited (“Shore Capital”, the “Company” or the “Group”; Ticker: SGR.BH), the independent investment group specialising in principal finance, equity capital market activities and alternative asset management, today announces its preliminary results.

Financial Highlights

•       Revenue increased 11.2% to £32.8m (2011: £29.5m)

•       Profit before tax of £3.7m (excluding Spectrum and DBD) (2011: £0.4m)

•       Profit before tax of £2.5m (including Spectrum and DBD) (2011: loss of £0.9m)

•       Earnings per share of 1.06p (excluding Spectrum and DBD) (2011: loss of 0.19p); 0.82p (including Spectrum and DBD) (2011: loss of 0.45p)

•       Final dividend per share of 0.50p (2011: 0.25p per share)

Operational Highlights

•       Another strong performance from ECM business, delivering a pre-tax profit of £5.1m (2011: £5.0m)

-       23% increase in secondary commission in second half – giving 15% increase for year

-       32% increase in corporate finance and corporate broking revenue

•       Repositioning of Asset Management operations progressing well and providing clients with an innovative suite

•       of new products

•       German telecoms business ‘Spectrum Investments’ continues to be well placed to deliver significant investment

•       upside

-       Increased holding in Spectrum since period end now gives us a majority interest

-       Investment potential endorsed with the sale of two competing German licences to E-Plus during 2012

Howard Shore, Executive Chairman of Shore Capital, said: “We continue to make good progress as a Group, bucking the trend of difficult trading conditions within ECM, whilst re-positioning our asset management activities to offer clients a diverse range of products. The wider macro picture remains broadly unchanged with only anecdotal evidence suggesting a more substantive recovery is underway. Nevertheless, as a business we remain true to our heritage, providing capital to ambitious management teams whilst offering innovative investment opportunities for our clients.

Our increased investment in the German telecoms market leaves us very well placed with recent developments suggesting our persistence in nurturing this opportunity could deliver substantial future returns."

Chairman’s Statement

Introduction

I am pleased to report that the Group made considerable progress in 2012 on many fronts, enabling us to achieve solid financial results whilst also further improving our strategic positioning.

Revenue was up 11.2 per cent to £32.8m (2011: £29.5m) and profit before tax (excluding Spectrum and DBD) rose substantially to £3.7m (2011: £0.4m). Including Spectrum and DBD profit before tax was £2.5m compared to a loss in 2011 of £0.9m (which included the substantial write down on our investment in Puma Hotels).

Our ECM business produced another strong performance, achieving a 23 per cent increase in secondary commission in the second half, giving a 15 per cent increase for the full year. Corporate finance and corporate broking revenues also showed strong growth with a 32 per cent advance over 2011.

Good progress was also made during the year in repositioning our Asset Management operations and our innovative suite of new products in this area leaves us well placed for future growth.

Since the year end we increased our stake in our German telecoms business “Spectrum Investments” and now have a majority holding. We believe that Spectrum is well placed to deliver significant investment upside as endorsed by the sale of two competing German licences to E-Plus in 2012.

The complete text of this announcement is available on the Company's website at www.shorecap.gg . The annual report & accounts will be sent to shareholders in due course and will also be available on the Company's website

Enquiries:

Howard Shore             Shore Capital Group Limited             +44 (0) 20 7468 7911

Lynn Bruce                                                                             +44 (0) 1481 728 902

Richard Oldworth        Buchanan                                            +44 (0) 20 7466 5000

Jeremy Garcia, Louise Hadcocks

Philip Secrett               Grant Thornton UK LLP                      +44 (0) 20 7383 5100

Melanie Frean             Nominated Adviser

Josh Critchley             RBC Capital Markets                          +44 (0) 20 7653 4000

Oliver Hearsey            Broker

Notes to Editors

1.    Shore Capital is an AIM-listed independent investment group. It specialises in principal finance, equity capital market activities and alternative asset management. The Equity Capital Markets division (“ECM”) offers a wide range of services for companies, institutions and other sophisticated clients, including corporate finance, stockbroking and market-making. Shore Capital Limited manages specialist funds, with a particular focus on alternative asset classes.

2.    Shore Capital is based in Guernsey, London, Liverpool, Edinburgh and Berlin. Shore Capital Limited, Shore Capital Stockbrokers Limited and Shore Capital and Corporate Limited are each authorised and regulated by the Financial Services Authority. Shore Capital Stockbrokers Limited is a member of the London Stock Exchange.

3.    Further information on Shore Capital, its products and services can be found at www.shorecap.gg