Tue 23 Sep 2008
Panmure Gordon & Co. plc today announces interim results for the six months to 30 June 2008.
• Good performance in institutional equities given market conditions, with the US business showing improving trend
• Significant cost reduction achieved in the US and the UK, the full benefits of which will be felt in 2009
• Investment banking revenue impacted by market conditions
• Group revenue £23.0m in the first six months of the year (2007: £33.5m)
• Adjusted loss after tax of £2.0m (2007: adjusted earnings of £6.2m)
• UK business broke even in the first half; US loss making, partly as a result of restructuring costs
• Revaluation of goodwill on ThinkPanmure
Tony Caplin, Chairman of Panmure Gordon said:
“The market was difficult throughout the first half of the year. Recent days and weeks have seen extraordinary developments. Our business thankfully is simple with no exposure to any sub-prime contagion or the requirement to depend on external funding. However the recent extreme conditions will have an impact on our short term performance.
We are focused on positioning the firm for success in the future. Our substantial cost reduction programme has reinforced our financial prudence in the UK and will transform the profitability of the US business. The broadening of our shareholder base, the strength of our corporate and institutional relationships, our investment banking pipeline, and our geographic reach all put the business in a position to move forward strongly when market conditions permit.”
Tim Linacre, Chief Executive said:
“Given the very difficult market conditions the focus has been on positioning the Group for 2009 and beyond. We have undertaken a very significant cost reduction exercise, without, in my view, weakening the business in any way. In the US we are targeting an operating cost number for 2009 of not more than $49m, nearly 30% less than 2007 and substantially below 2008. All the costs of achieving the reduction are being taken this year.
We have also strengthened the Group through business and client wins in both the US and the UK, the opening of our Geneva office, the welcoming of EFG-Hermes as a significant shareholder and a continued focus on our core activities.
When there is a recovery, given the operational gearing in the business and our lean cost structure, this business has the potential to be significantly profitable.”
For further information, please contact
Tim Linacre, Chief Executive
David Liddell, Chief Financial Officer
Panmure Gordon & Co. plc 020 7459 3600
[For the full content of this announcement, please refer to the ‘Report & Accounts’ section of the website.]