24 May 2010
Panmure Gordon & Co. plc
At the annual general meeting of the Company being held today, Simon Heale, the
Chairman, will make the following comments:
"The business is making progress against a background of volatile markets and a
challenging economic backdrop.
In the UK we have this year successfully concluded a number of investment
banking transactions, though the pipeline is weighted towards the second half of
the year. Commission income has shown some improvement from the levels seen
earlier in the year, in part as a result of commission generated from clients
introduced by our major shareholder, QInvest, and we expect to see that
continue. Our Swiss operation continues to perform well.
In the US, where we operate as ThinkEquity, a Panmure Gordon Company, our
investment banking pipeline continues to grow and we are now entering a period
of deal execution. We have been involved in one completed IPO and are mandated
on another eight IPOs which have filed with the SEC and an additional four which
have not yet completed their filing process. We also have a number of M&A and
private placement mandates underway in both the UK and the US. Commission
income in the US remains under pressure as the volumes of equities traded
(particularly in non-financials) remains at historically low levels; we do
however expect commission to increase as the year progresses.
Taking the year as a whole, we expect there to be a strong bias in revenue, and
particularly in profitability, towards the second half. We will provide an
update on our expectations for the year at the end of September, when we
announce our results for the first six months of the year.
We see further opportunities to develop the business. In the UK, Panmure Gordon
& Co has a strong market position. As a number of brokers depart the small cap
arena we see clear opportunity to provide companies, whatever their size, with
high quality advice and support. In the US our intention is to establish
ThinkEquity as one of the leading boutique investment banks. ThinkEquity has
been successful in winning financing and advisory mandates; its challenge is now
to convert those mandates to meaningful revenue, to continue to build on the
momentum being created and to drive the business towards profitability.
As a Group, the different parts of our business are increasingly operating as
one to the benefit of our clients. We see significant growth in the coming
Nathaniel Webb, Group Communications Manager
Panmure Gordon & Co. plc: 020 7459 3600
Ed Gascoigne-Pees, Financial Dynamics: 020 7831 3113
Gerry Beaney, Grant Thornton UK LLP (NOMAD): 020 7383 5100