Early stage technology business investor has seen its stake value soar
Arbuthnot Banking (ARBB:AIM) £16.11
Gain to date: 23.9%
Original entry price: Buy at £13.00, 8 January 2015
London-based Arbuthnot Banking (ARBB:AIM) exceeded analysts’ forecasts in the six months to the end of June but larger gains are expected in the second half. Underlying pre-tax profit grew 30% to £17.1 million in the first half (versus the same period a year earlier). This figure is expected to improve by 62.6% for the full-year to £36.6 million, according to Numis.
The first half was characterised by higher lending - up 66% to £1.4 billion - and it taking £500 million more on deposit than it did in the same period in 2014. More of the same is set to drive growth in the second six months of the year, with its retail operations playing a huge role. Arbuthnot owns 51.9% of retail lender Secure Trust Bank (STB:AIM), a business for which Canaccord Genuity has lifted its lending forecasts for the year to 31 December 2015 by 7% to £1 billion, resulting in a 5% rise in operating income to £136 million.
Owning Arbuthnot gives investors access to the cash flows of two banks. Analysts are bullish and we agree. (MD)
