Half-yearly Report: 26 September 2012

London, 26 September 2012 – Panmure Gordon & Co. plc (“Panmure Gordon” or “the Group”) today announces its unaudited results for the first half ended 30 June 2012.

Continuing business

Financial highlights

  • Profit from continuing operations of £1.2m (H1 2011: loss of £2.7m)
  • Profitable in every month of H1 2012, and in each month since period end
  • 18% increase in net commission and fee income to £11.2m (H1 2011: £9.5m) driven by 41% increase in corporate transaction revenues
  • Debt free balance sheet

Operational highlights

  • Phillip Wale appointed as CEO
  • 24% reduction in administrative expenses to £8.7m (H1 2011: £11.4m) reflecting actions taken in 2011
  • Strong growth in investment banking revenues.  Three IPOs completed in first half
  • London operation moved to new premises at One New Change since period end
  • Focus now on broadening the continuing business

 Divestment of US business

  • Divestment ofUSbusiness completed in June 2012
  • These interim results include a loss on the discontinued operation of £2.0m (H1 2011: loss of £1.3m) and which results in a statutory loss of £0.8m (H1 2011: loss of £4.0m)

 

Phillip Wale, Chief Executive, commented:

“Being profitable every month so far this year reflects the impact of actions taken to reduce costs in 2011 and the inherent strength of Panmure Gordon’s business.  Following the divestment of our US business, we are now resolutely focused on building upon the Group’s traditional core business.

“I am delighted that, in subdued markets, we are a broker-of-choice for dynamic companies seeking a successful flotation in London and we have an encouraging pipeline of investment banking mandates.  Market conditions remain challenging, but with the full support of our major shareholder, QInvest, our simplified structure and improving quality of earnings, we look to the second half with confidence.”

 

Enquiries:

Panmure Gordon

Phillip Wale, Chief Executive

Philip Tansey, CFO                                                                                                              020 7886 2500

Nathaniel Webb, Communications Director                                                               020 7886 2886

FTI Consulting

Billy Clegg                                                                                                  020 7831 3113/07977 578153

Ed Gascoigne-Pees                                                                                  020 7831 3113/07884 001949

Grant Thornton Corporate Finance (NOMAD)

Gerry Beaney/Salmaan Khawaja/Jen Clarke                                                               020 7383 5100

  

Chief Executive’s review

It is my pleasure to present my first interim report since I joined Panmure Gordon.

Since the full year 2011 results, the most notable change to the firm is the successful divestment of ThinkEquity to local management, to whom we wish every success.

The profit from continuing operations, after excluding the impact of ThinkEquity, was £1.2m compared to a loss for the comparative period in 2011 of £2.7m.  This was on account of an overall 18% rise in net commission and fee income to £11.2m (H1 2011: £9.5m) driven by a 41% increase in corporate transaction revenues and a 24% reduction in administrative expenses to £8.7m (H1 2011: £11.4m).

I am particularly pleased to report that the continuing business was profitable in every month of the first half and we are now resolutely focused on building upon the Group’s traditional core business.

In challenging markets, Panmure Gordon has successfully floated three exceptionally innovative UK-based companies, all of which will use the funds raised at their IPOs to grow their businesses.

In our equities division, we were once again ranked a Top 5 brokerage in the prestigious Thomson Reuters Extel Mid & Small-Cap survey 2012.  The volume of shares traded on the London Stock Exchange has continued significant year-on-year declines, but despite this total institutional equities income has held up creditably.

Our international presence in Switzerland and Singapore continues to help us to facilitate transactions for our clients and, in particular, to win new business.  We continue to have outstanding partnerships with QInvest in the Middle East, Ambit Capital in India and with Auerbach Grayson, our distribution partner in North America.

It has been my pleasure to get to know the firm’s employees and move our London office to new client-focused premises at One New Change.  The move crystallised a one-off benefit of £0.5m due to the release of certain accrued rental incentives on the exit from our former premises.

I look forward to welcoming new team players who will work hard on behalf of our corporate and institutional clients.

Outlook

With the continued support of QInvest, our simplified structure and the improving quality of our earnings, we look to the second half with confidence.  In spite of market fragility, the UK business has continued to be profitable every month since the period end.  We see opportunities to broaden our business, further develop our encouraging investment banking pipeline and take advantage of current markets to hire selectively while maintaining vigilant cost controls.

Phillip Wale

Chief Executive

 To view the interim report in full, go to: www.panmure.com/reportsandaccounts.php
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