Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading


Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading


Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading


RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading


China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Categorized | Financial

Panmure Gordon swings to full-year loss

Posted on March 31, 2016


Panmure Gordon confirmed on Thursday that it swung to a statutory loss of £16.7m during a “disappointing” 2015, in the first set of results unveiled by new chief executive Patric Johnson, who is trying to turn round the fortunes of the City stockbroker.

The overall loss was driven by a decision to write off outstanding historic accounting goodwill of £13.2m on the balance sheet, which dates back to 2005, and start 2016 with a clean slate.

    Panmure reported a loss after tax from normal operations of £4.1m for 2015, compared with a profit in 2014. This is in line with the company’s warning in December that it expected to suffer a pre-tax loss of £4m–£4.5m in 2015 after a decline in capital markets transactions.

    Mr Johnson said: “The problem is that last year we didn’t do as many transactions as we should have done. We didn’t focus enough on origination.”

    Panmure, whose name dates back 140 years, and its stockbroker peers are suffering from structural challenges to their business model coming from more regulation, which is compounded by fewer deals and lower corporate retainers.

    Revenue from corporate finance and other fee income was down 38 per cent to £12.8m during 2015, while net commission and trading income increased 11.3 per cent to £10.5m.

    Mr Johnson was promoted to chief executive in February after his predecessor Phillip Wale quit abruptly, a week after chairman Ed Warner announced his decision to leave the group. The same month Panmure announced it had agreed a £5m loan facility from its Qatari backers QInvest to bolster its balance sheet.

    Panmure’s headcount has reduced roughly from 140 people last year to just over 100 today. Since he took the helm, Mr Johnson has cut costs by shutting non-core desks such as the five-person Swiss office and a fixed-income desk that was part of Panmure’s acquisition of Charles Stanley Securities in 2015.

    The company has moved from a generalist approach to being sector-driven to position itself for Mifid 2, the EU directive that is reshaping Europe’s financial services industry and putting pressure on asset managers’ research budgets.

    Mr Johnson said: “We are under no illusion as to the potency of the dangers that lie ahead of us this year and the external factors that will weigh heavily on the fundraising opportunities in our market [ . . .] My key focus now is to swing the business back into the black.”

    Separately, on Thursday Panmure’s rival Numis Corporation issued a trading update for the six months to the end of March. It said it expects to report revenue and profits above the first half of last year, on the back of 27 equity transactions and 10 initial public offerings so far this financial year. In the first half of its 2015 financial year, Numis recorded revenues of £45.7m and £14.3m in adjusted pre-tax profits.