Ahead of going into its close period Panmure Gordon gives the following trading update for the year ending 31 December 2007. 19 December 2007 Panmure Gordon & Co. plc Trading Statement Ahead of going into its close period Panmure Gordon gives the following trading update for the year ending 31 December 2007. Introduction The UK business has performed well and the US business has made good progress in what have been exceptionally challenging markets, particularly in the last four months of the year. At the time of publication of our Interim report in September we commented that the period since the end of the first half had seen extremely turbulent equity markets, and while it was too early to predict it was likely that those conditions would have an impact on the performance in the second half. As we have seen market conditions have remained very difficult, with the impact being felt particularly strongly in small and mid-cap markets. Business performance Against this difficult market background the UK Corporate Finance business has performed well. We were, for example, the most active Nomad by funds raised on the Aim market in the first half of 2007, and in the second half of the year we led the successful IPO of CVS and undertook a number of other fundraisings for clients. We have also continued to be active in M&A deals, and have won a number of excellent new corporate clients. The performance of Institutional Equities in the UK has reflected the market conditions. After a particularly difficult third quarter our US business, ThinkEquity, had a much improved last quarter led by Investment Banking. We have undertaken some limited restructuring within the business, and hired a number of senior bankers who can help to grow the business and franchise. Before the costs of restructuring and the new hirings, which will amount to some $4m, all of which will be taken in 2007, ThinkEquity is expected to be break even in the second half of this year. Adjusting for the costs of the hirings and the restructuring costs, and the impact on earnings of losses on available for sale investments (not expected to exceed £1m), the results for the combined business for the year ending 31 December 2007 are expected to be in line with market forecasts. Looking forward Looking to 2008 both the UK and the US businesses have particularly strong and high quality investment banking pipelines. The investment we have made in upgrading the quality of our staff is beginning to show results. As at the time of writing both the UK and the US investment banking pipelines are substantially ahead of the same time last year. While the short term outlook for the market is uncertain we have seen evidence in the US of growth stocks, the key ThinkEquity area of specialisation, beginning to outperform, and we are optimistic that the momentum shown in the last quarter of 2007 can continue through 2008. In the UK we believe Panmure Gordon can capitalise on its strong position. The Board has also considered how best to integrate further the Panmure Gordon and ThinkEquity businesses. An encouraging feature of the past months has been the number of transactions which are being worked on with joint teams. We are also delighted to have established a dedicated team in Panmure’s London office selling ThinkEquity research and a dedicated team in the US selling Panmure Gordon research. These teams will be expanded during 2008. We now believe it appropriate to rebrand the US business ThinkPanmure to re-emphasise the capabilities of the combined firm. We go into 2008 with a business employing approximately 300 people, covering over 450 stocks from a research perspective, with strong investment banking and corporate finance teams. As mentioned we have strong, and high quality, investment banking pipelines. We have a properly capitalised balance sheet and a nascent wealth and asset management business in the US which we believe can be grown substantially. Following the restructuring and new hires ThinkEquity is well placed to continue the momentum shown in the last quarter into 2008. In the UK our Northern office is fully functioning and making a positive impact. We have net assets, after accruals for bonuses, of in excess of £35m. The Board has no doubt that the business can continue to make progress even in difficult markets, and is well placed to show strong growth should the markets return to more favourable conditions. In the meantime we intend to keep a close control on costs and seek opportunities to strengthen further the corporate and institutional client base. It is intended that the results for the year will be announced in March 2008.