Final results; 15 April 2009

Panmure Gordon & Co. plc today announces preliminary results for the year ended 31 December 2008

The Company has today separately announced a new significant shareholder and strengthening of its balance sheet to position the firm to take advantage of future business opportunities.Key information

Fund raising of approximately £17.3m before expenses in a placing with BlueGem LP (“BlueGem”) through its subsidiary BlueGem Water Holding B.V. and an institutional investor of 72m new Ordinary Shares in the Company at a price of 24p per Ordinary Share.

• Including the net proceeds of the placing, the Company will have regulatory assets of over £40m, representing over three times the required regulatory capital.

• BlueGem is a premier private equity fund. We expect additional business opportunities arising from the investment.

• The placing is subject to shareholder and regulatory approval.

Adjusted loss before tax for 2008 of £9.2m (2007: £10.5m profit), following challenging market conditions, trading book losses and unrealised losses on investments

• UK trading loss of £2.2m, reflecting the extreme market downturn in the autumn and the exiting of illiquid trading book positions. Size of trading book reduced.

• £1.3m loss on investments.

• Group corporate finance income reduced by 54% from £36.7m to £16.9m.

• Statutory loss before tax of £28.8m, after non-cash goodwill impairment of £13.7m, non-cash share based payment charges of £2.4m and restructuring charges of £3.2m.

Decisive action taken in 2008 to cut costs

Group headcount reduced by 18%, from 316 to 260.
Over the course of the year, UK costs reduced by 10% and US costs by 18%.
Since its acquisition in 2007, ThinkEquity’s fixed cost base has been reduced by 31%, from an annualised $49m to an annualised $34m.
ThinkEquity is now refocused, with greater emphasis on M&A (with a record year in 2008) and all sales and sales trading employees now on commission-based income.
Experienced investment banker, Greg Wright, appointed as new CEO of US business, ThinkEquity, who has led fundamental restructure of the business.
Excellent, selective hires across investment banking and research to further strengthen franchise.

New corporate clients and growth in market share of commission income in 2008, despite difficult market conditions

Appointed to 13 new corporate clients.
In US, ThinkEquity acted as adviser on 13 M&A deals and experienced good growth in commission levels.
In UK, market share of commission income increased by 30% over the year.

Current trading and outlook significantly improved

Group revenues year to date substantially ahead of 2008.
Trading conditions in first quarter remained difficult, though recent weeks have shown marked improvement.
Amount billed in UK investment banking transaction revenue year-to-date exceeds total billed for calendar year 2008.
UK commission income in line with that achieved last year, representing significant growth in market share given weak markets.
Trading book performance positive, benefiting from actions carried out at the end of last year.
US institutional equities commission income similar to that achieved in the first quarter of 2008.
Pipeline of US investment banking transactions, particularly for second half of year, is encouraging.
Operational performance of US business much improved due to significant cost reduction exercise.

Tim Linacre, Chief Executive, commented:

‘2008 was one of the most difficult years on record for financial markets in both the UK and the US. We took decisive action which has positioned the business for the year ahead and beyond. Following the subscription announced this morning, I am confident that we can now move forward strongly. My confidence is underpinned by the performance of the business in recent weeks.’

Note To Analysts:

A briefing for all interested analysts will be held by Tim Linacre, Chief Executive and David Liddell, Chief Financial Officer, at Panmure Gordon’s offices from 10am this morning. To facilitate security passes, please pre-register with Rehana Edun-Noys on 020 7614 8394.

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