Panmure Gordon & Co., the 134 year-old U.K. stockbroker, reported a widening first-half loss of 5.96 million pounds ($9.44 million), citing lower commission income.
The company, which also named Edmond Warner as non-executive chairman, had posted a net loss of 3.65 million pounds in the first half of 2009, London-based Panmure Gordon said in a statement today. “The first half results reflect the tough trading environment, however the company looks to the second half with confidence,” Warner said. Commission income was “much reduced,” the company said, felling to 17.1 million pounds from 28.4 million pounds in the previous period.
Evolution Group Plc, a London-based rival, said on Sept. 23 it’s considering an offer for smaller Panmure Gordon. Brokers in the U.K. are seeking to consolidate after the financial crisis curbed financing for takeovers, hurting revenue from advising on fundraisings and mergers.
“There has been no contact” with Evolution, said Panmure Gordon’s Chief Executive Officer Tim Linacre in an interview. “As a board, we are always looking at options” for the business, he said.
“Despite the very difficult markets, we completed a number of deals for clients, though the transaction sizes were lower than in previous years” for U.K. investment banking, Panmure Gordon said in the statement.