Preliminary Results for the year end 31 December 2006

Panmure Gordon & Co. plc today announces preliminary results for the year ended 31 December 2006. Panmure Gordon together with its subsidiaries is a UK corporate and institutional stockbroker focusing on corporate finance and broking, institutional sales and trading, equity research and market making.

13 March 2007

PANMURE GORDON & CO. PLC (“PANMURE GORDON” OR THE “GROUP”)
Preliminary Results for the year end 31 December 2006

Panmure Gordon & Co. plc today announces preliminary results for the year ended 31 December 2006. Panmure Gordon together with its subsidiaries is a UK corporate and institutional stockbroker focusing on corporate finance and broking, institutional sales and trading, equity research and market making.

HIGHLIGHTS

Financial Highlights

•Net revenue up 41% to £42.4m
•Adjusted profit before tax up 113% to £12.9m
•Adjusted earnings up 62% to £9.8m
•Adjusted earnings per share up 17% to 15.8p
•Strongly cash generative with net cash of £40m at year end

Business Highlights

•First full year of operation following the Durlacher transaction in 2005
•Good financial performance with strong improvement in operating results and continued focus on cost control
•Well balanced business with approximately half of revenue coming from institutional equities and half from corporate finance
•Since year end have announced the opening of a Liverpool office and the acquisition of ThinkEquity, a fast growing US based investment bank

Operating Highlights

•Revenue per employee up 21% to £345k
•Ratio of employee compensation to turnover held at 55%
•Average daily institutional net revenue up 65% to £81k
•Cash generation from operating activities up 44% to £17.0m

Tim Linacre, Chief Executive said: “2006 and the first few months of 2007 have been a very active and successful time for the business. Not only did the firm produce good financial results but, through the continued process of internal improvement, the soon to be opened Liverpool office and the acquisition of ThinkEquity, we have established a platform for further profitable growth. The New Year has started well for us and, although markets have very recently been more volatile, our corporate finance pipeline is encouraging and our institutional equities business is performing well. While we expect to complete the acquisition by the end of March, the performance of ThinkEquity in the first months of the year and the outlook for the rest of the year is very encouraging.”

For further information, please contact

Tim Linacre, Chief Executive
Panmure Gordon & Co. plc
020 7614 8300

David Rydell/Nick Lambert/Chris Hamilton
Bell Pottinger Corporate & Financial
020 7861 3232

PANMURE GORDON & CO. PLC

CHAIRMAN’S STATEMENT

It gives me great pleasure to offer my first statement as Chairman of Panmure Gordon.

2006 was our first full year of operation of the “new” Panmure Gordon following the merger with Durlacher in 2005. The integration of the two firms was sensibly handled, and quickly completed during 2005. The strong financial performance in 2006 would not have been possible without this accomplishment.

The firm’s revenue rose to £42.4m in 2006, an increase of 41% on 2005. Operating profit before goodwill amortisation, FRS 20 option charges and exceptional charges, also grew to £11.6m. All areas of the business performed well, with revenues being generated in fairly equal proportions by Corporate Finance and Institutional Equities. During the year we acted as financial advisor or broker on 13 UK public offers worth over £4 billion and acted as sponsor, nomad, bookrunner or broker on 10 IPOs.

The volatile stock market environment during the year provided a challenge to all parts of our firm. The fact that we ended the year with a record result, and enjoyed from October to December our strongest quarterly performance, demonstrates to me both the strength and momentum of our business. Our share repurchase plan, which we put into effect during the year, was designed both to return some cash to shareholders, as well as to demonstrate our confidence in the condition of our business.

The Chief Executive’s statement will review in more detail the development of Panmure Capital and its migration, in early 2007, into Loudwater Trust Limited. We are pleased to have helped to give birth to Loudwater, and I believe that the spin-off to a listed public company is in the interest of shareholders.

During 2006, we gave considerable thought as a Board to the opportunities to grow Panmure Gordon’s business. While continuing to strive for excellence in our existing business must always be a priority of the first magnitude, we saw a number of opportunities to develop our business through organic growth, acquisition and merger. The opening of a Liverpool office, and a strategic alliance with GMP Securities, were examples of opportunities we identified, and we expect both will make important contributions in 2007.

During 2006, we began discussions with a privately held, fast growing San Francisco based investment banking firm ThinkEquity Partners LLC, and in February this year announced the acquisition of ThinkEquity.

Following completion of the acquisition in March 2007, our business will truly become “dual national” – and we will confidently be able to serve clients in the US as in the UK. Whether seen in the growth in the number of our offices (one to eight), the volume of shares we will trade, the number of institutional clients we will serve, the number of capital raisings we will manage, or even simply in the number of staff in our firm (from 125 to over 300), our business has been transformed. We are excited about the combination of two firms who share similar, entrepreneurial values, and about the chance to build a unique “bridge” between the growth equity markets in the US, and the international institutional market that exists in London. I believe Panmure Gordon will be a wonderful, exciting and rewarding place to work.

I look forward to welcoming Michael Moe and Deborah Quazzo, co-founders of ThinkEquity, on to our Board on completion of the transaction.

During 2006, Richard Wyatt stepped down as Chairman of Panmure Gordon, but continues to serve as a Non-Executive Director. Richard was a primary architect of the new Panmure, and these brief words will not in any sense do justice to the contribution he has made to the healthy condition in which we find ourselves. However, I would, on behalf of our employees and shareholders, like to thank him deeply for his efforts.

At the beginning of 2007, Simon Heale joined the Board as a Non-Executive Director, and I formally welcome him to the Board.

Following his appointment as Chairman of the Loudwater Trust, Howard Flight informed me that he would not be standing for re-election to the Board at the Annual General Meeting. I would like, on behalf of the Board, to thank Howard for his contribution over the years to the Board of Panmure Gordon and its predecessors.

I would also like to express my gratitude to our staff for their efforts during 2006. 2007 starts as a year of great promise for Panmure Gordon, but also will be a year of hard work. I wish all our current employees, as well as those joining the firm, best wishes for success in 2007.

Charles Stonehill
Chairman
12 March 2007

The complete Preliminary Results document is available here:
http://www.panmure.com downloads/PreliminaryResults2006.pdf

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