24th Mar 2015 08:28
LONDON (Alliance News) - Panmure Gordon & Co PLC Tuesday said it is to pay its first dividend since the start of the financial crisis in 2007, as it reported a jump in pretax profit bolstered by higher net commission and fee income.
The institutional stockbroker and investment bank said it made a GBP2.1 million pretax profit in 2014, compared with a GBP1.2 million pretax profit in 2013. Net commission and fee income rose to GBP29.4 million from GBP27.3 million, as higher corporate finance income more than offset lower net commission and trading income. Administrative costs increased to GBP25.5 million from GBP24.6 million, while the costs of redundancies and restructuring were flat at GBP1.2 million.
It will pay a dividend of 2.5 pence for the year.
"Despite difficult markets in the second half of the year revenue growth has been encouraging. The return to paying a dividend for the first time since 2007, the onset of the financial crisis, is a clear sign that the strategy executed over the recent years is successful," Chief Executive Phillip Wale said in a statement.
Wale said that Panmure Gordon has won new corporate clients, mandates and taken part in four significant fundraisings to date in 2015, fuelling his optimism for the year as a whole.
"We are optimistic that recent improved activity will continue and are pleased to be working on a healthy pipeline of engagements. Whilst difficult to forecast, equity capital markets are expected to remain receptive to high quality, sensibly priced transactions. With the support of our major shareholder, QInvest, Panmure Gordon is well-positioned to build on the achievements of 2014 and create meaningful upside for shareholders," Wale said.
Still, Panmure shares were down 7% at 126 pence early on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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