Retail investors turbocharge Winterfloods as stock trading booms

A stampede of armchair investors dipping their toes back into the water has brought good times back for market maker Winterfloods.

The securities arm of finance group Close Brothers more than doubled profits for the half year ending January to £14.4 million.

There were “several geopolitical events” such as Brexit and the American presidential election which led to more trading and “more opportunity for single stock selection,” said Close chief executive Preben Prebensen.

Winterfloods’ principal to agent volumes, used as a proxy for retail investor interest, were up 63% compared with the prior year.

Overall adjusted operating profits at Close rose 21% to £134.2 million, thanks to strong growth in its asset management and banking business.

Mike Biggs, the chairman of Direct Line, has been named as chairman of Close, replacing Strone Macpherson, who steps down after 14 years.