Panmure Gordon raises additional £46m from shareholders to fund expansion
London, 30 September 2019 – Panmure Gordon Group Limited (“Panmure Gordon” or “Group”) has raised an additional £46.1m of equity from shareholders to fund its ongoing expansion.
The funding, raised from existing shareholders, is being used to support the development of the business from its core stockbroking franchise into a 21st century merchant bank with capabilities spanning advisory, equities, M&A, private capital solutions and prime services.
To date, the business has engaged in a substantial investment programme.
- The makeup of our talent has changed significantly, including a net headcount increase to 128 employees by year end.
- We made significant investment in Equities to be competitive and relevant to institutional investors in a post-MiFID II environment. As a result, the equity research offering has expanded substantially, with the hiring of additional top rated analysts and through delivering our plan to more than double our coverage footprint from 150 companies to more than 300.
- Expansion of our advisory capabilities with senior hires in key sectors including financial services, consumer, healthcare and digital media.
- The business completed the acquisition of PrimeXtend Limited, adding prime services to the Group’s offering.
- There has been considerable investment in key systems and controls to establish the building blocks to support a larger and growing business.
The increased investment is disclosed in Panmure Gordon’s consolidated accounts for the financial year ended December 31, 2018, which have been filed today with Companies House.
The group recorded a pre tax loss of £17.2m for the year, excluding £6.5m of exceptional costs, a reflection of the investment being made in the business and the tough market conditions.
Investment Banking recorded a strong start to the year with its Advisory, Equity, and Private Capital seeing strong deal flow in the first half before political uncertainty led to a reduction in activity in the latter half of the year. Equities performed in line with 2017. Prime Services demonstrated good revenue growth.
Ian Axe, CEO of Panmure Gordon, said: “Since Panmure Gordon was taken private in July 2017 we have set about transforming the Group into a 21st-century merchant bank. We believe the current disruption in the market presents a significant opportunity for investment and we are building a client-focused platform relevant for a changing economy.
The additional equity raised from our shareholders has enabled this continued transformation when others are having to be cautious or cut back in the face of a challenging market.”
The Group’s financial results includes the the performance of its principle business divisions: Investment Banking; Equities (includes Research, Sales & Trading); and Prime Services. These business divisions represent the activities of Panmure Gordon’s four subsidiaries: Panmure Gordon & Co Limited, Panmure Gordon UK Limited, Panmure Gordon Securities Limited and Prime Xtend Limited.
Panmure Gordon & Co Limited was formerly the lead entity for the Group while it was listed. When the Group was delisted in July 2017, it became a subsidiary entity that provides administrative services for the Group’s operations.
Overview of financial performance
- Group revenues of £19.9m
- Group operating expenses of £36.4m, excluding £6.5m exceptional costs
- Group pre tax loss of £17.2m before exceptional costs
- £36.1m of equity raised during the period, with a further £10m after the end of the financial year.
About Panmure Gordon
Panmure Gordon is building a 21st-century merchant bank that provides independent advice, research and execution services to UK growth and mid-cap corporates and investment companies, underpinned by long-term client relationships.
For over 140 years the Firm has helped fast-growing corporate and institutional clients achieve their ambitions. Integrity, excellence and experience are at the heart of everything Panmure Gordon does, whether in public or private markets for equity or debt.
The Firm’s well-funded growth strategy is being delivered by its highly experienced team, to create a compelling offer for current and future clients.
The Firm is a registered broker-dealer in the United States.