A recovering UK economy should boost fundraising and trading of shares of smaller companies, Howard Shore, executive chairman of stockbroker Shore Capital, said today.
He added: “The recent change to allow AIM shares to be put into ISAs has had a clear effect but at the same time it is small caps which benefit most from the improving, underlying economic situation. Investors are awake to that.”
Shore Capital’s first-half profit more than doubled from £1.5 million to £3.3 million on revenues unchanged at £17.8 million. It plans to pay a full-year dividend of 0.8p, up from 0.5p last year.
Shore said: “The previous exclusion of AIM stocks from ISAs was somewhat paternalistic because it suggested that they were riskier investments. People can make up their own minds on how risk-averse they want to be.”
He said the asset management division was seeing new openings as it offered debt to businesses unable to raise it from banks.
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