Firm is confident of meeting targets following fall in revenue in H109
CBG Group, the AIM-listed broker, is trading in line with expectations and will announce its full-year results on 23 March, it said in a statement to the stock exchange.
A number of directors have increased their holdings in the business over the past week.
As CBG prepares to enter its pre-results close period, it said it remained confident about prospects and opportunities for the coming year. Shares were up 20.2% to 56.5p on Monday.
Analyst firm Daniel Stewart &?Co upgraded shares in the broker to ‘buy’ following the news.
It said: “In our view, one of the key attractions of CBG is the high level of broking profits margin it has historically generated, averaging 26% since listing. Even during the challenging 2009 trading period, it has retained a near best-in-class margin of 15%.”
In its results for the first half of 2009, announced last August, CBG’s revenue dropped to £4.86m, from the £5.66m for the same period in 2008. Earnings before interest, taxes, depreciation and amortisation also dropped to £831,000, from the £1.43m of H108.
The results were announced after the broker consolidated offices and reduced its headcount in Manchester by 173 to 146.