News

Panmure slumps into red; cans divi

23 September 2008 13:43:00

Restructuring costs in the US sent stockbroker Panmure Gordon tumbling deep into the red in the first half of 2008.

The company said the UK business broke even at the adjusted earnings level but the group as a whole recorded a pre-tax loss of £19.8m after a goodwill impairment of £13.7m relating to the March 2007 US acquisition, ThinkPanmure.

In the first half of 2007 the company made a pre-tax profit of £4.4m.

Net revenue fell to £23.0m from £33.5m, as merger activity dried up and trading equities became difficult.

Net commission and trading income dipped to £12.1m from £13.6m a year earlier.

The company has responded to the reduced levels of corporate activity by significantly reducing its cost base and expects operating costs to be no more than $49m in 2009, some 30% lower than in 2007 and substantially lower than 2008's figure.

"All the costs of achieving the reduction are being taken this year," said Tim Linacre, chief executive.

Panmure said it has no exposure to any "sub-prime contagion" and no need of external funding.

The company does not propose to pay an interim dividend this year. Last year the company paid a maiden interim dividend of 1.5p.

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