Interactive Investor, known online as ii.co.uk has announced its new customer numbers have doubled in the first quarter of 2020, with revenues up by 61 per cent.
Reported net revenue from the online investment platform is up from £19.3m to £31.1m for the first quarter compared the same period last year. Pre-tax profits grew 55 per cent to £9m compared to previously reported figures of £5.8m
Boosting these figures are new customers, where an additional 5,477 were acquired to the first quarter of 2020, bringing the total to 10,607, compared to 5,130 in the first quarter of 2019. Reporting on net new business, Interactive Investor have reported an increase of 141 per cent to £1.02bn.
Reporting on these substantial increases, Interactive Investor insists it will remain profitable during the global coronavirus pandemic, with 30 per cent of claimed revenues deriving from monthly fees. This is in part due to the group not being dependent on changing interest rates or volatile trading volumes and market movements.
Richard Wilson, Chief Executive at Interactive Investor claims fee revenues are covering approximately 54 per cent of expenses, which means the company will continue to maintain profitability, even though trading volumes and interest rates continue to fall.
Interactive Investor assures its customers they can continue to support them through these difficult times citing a “resilient operating model” and a “strong balance sheet”.
An agreement was reached in February 2020 by Interactive Investor to acquire The Share Centre in a cash and shares deal, reputedly worth upwards of £60m.
Shareholders in The Share Centre will each receive 4.1p in cash, and a proportion of new shares in Interactive Investor’s parent company II, under the terms of the deal.