LONDON (Alliance News) - Panmure Gordon & Co PLC Tuesday reported a near doubling in annual pretax profit as net commission and fee income soared on increasing client numbers and the institutional stockbroker and investment bank's turnaround strategy.
Panmure Gordon reported a GBP1.2 million pretax profit for 2013, up from GBP595,000 in 2012, as net commission and fee income increased by 29% to GBP27.3 million while administrative costs grew by 20% to GBP24.5 million. The company boasted 130 corporate clients at the end of 2013, compared with 96 at the end of 2012.
The stockbroker and investment bank has been working on a turnaround strategy since 2012, targeting more diverse revenues, managing costs and exiting its loss-making US business.
Chief Executive Phillip Wale said the results show that Panmure has continued to build upon that turnaround.
"As 2014 has commenced, we have continued to grow our corporate client list and win further transaction mandates. For the short to medium term at least, equity capital markets are expected to be receptive to high quality, sensibly priced transactions. With the support of our major shareholder, QInvest, Panmure Gordon is well-positioned to build on this momentum," Wale said in a statement.
However, Panmure did not resume paying dividends, instead outlining plans for a share capital reduction. Chairman Ed Warner said the reduction will create distributable reserves and put Panmure in a position to pay a dividend in the future when trading conditions and profits allow.
Due to losses incurred in previous years, an accumulated deficit ? or negative retained earnings ? is held in Panmure's profit and loss account. If approved by shareholders, Panmure will apply to court for an order to cancel the deferred shares, which have no voting rights, and the share premium account.
Panmure shares were Tuesday quoted at 163.50 pence, flat.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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