Shore Capital has its eyes on making some 'opportunistic' deals

SHORE Capital, the boutique investment bank which opened its first Scottish office last year, is on the look out for "opportunistic" acquisitions after doubling pre-tax profits in the first half.

Howard Shore, who set up the firm with just 10,000 in 1985, said he will be keeping an eye out for potential targets over the next six to 12 months, particularly if the economy takes a turn for the worst and values become cheaper.

"We have only done three deals in ten years so I wouldn't like to say we will be a deal making machine or a deal junkie," he told The Scotsman. "But acquisitions could be very important to shareholder return."

Shore Capital yesterday unveiled a 107 per cent surge in interim pre-tax profits to 4.7 million despite "market conditions becoming tougher". Revenues jumped 23 per cent to 18.3m, but the interim dividend was unchanged at 0.25p.

Shore said the bank, which specialises in alternative asset class fund management and equity capital markets, had "a lot of liquidity" and was well positioned for any further market downturn.

"We are well positioned if things improve and we are well positioned if things deteriorate," he said.

Shore Capital opened its first Scottish office, in Edinburgh, last June, offering institutional brokerage services and research aimed at the capital's fund management community.

Shore, a Conservative party donor and supporter of David Cameron, said banking regulation was heading in the right direction despite a mixed reception in the City to Sunday's new Basel rules.

"Many of the banks (before the crisis] depleted their reserves," he said. "In one form or another things need to go back to basics." Shore also expressed support for the coalition government's first few months in power.

"Our government has started very well, doing the right things and cutting the deficit."