Panmure swings into profit after strategic overhaul

Panmure Gordon has returned to profit after a strategic overhaul.  

Pretax profit at the broker for the six months to 30 June stood at £1.2 million after a £2.7 million loss in the corresponding period of the previous year. Underlining its return to health the group profitable in every month of the first half.  

At the same time the group enjoyed and 18% increase in net commission and fee income to £11.2 million versus £9.5 million in the previous year. This was driven by 41% increase in corporate transaction revenues.  

Panmure is starting to reap the rewards from a business overhaul in 2011, which saw administrative costs fall from £11.4 million to £8.7 million in the first half. It also completed the divestment of its US business in June.

New Panmure chief Philip Wale told the stock market: 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.’