Panmure Gordon swings back into the black but boss cautious on future

PANMURE Gordon chief executive Patric Johnson said he was under “no illusions” about the challenges ahead as it eked out a small profit following heavy losses last year.

The City broker swung back into the black thanks to a busy period of dealmaking and flotations, with fees rising to £10.1 million from £7.5 million. UK trading commissions also rose 5.3% to £5.1 million, bucking a long-running trend of lower trading volumes.

“I’m pleased with what we’ve done to date and under no illusions this job is not an easy one... but we’re moving in the right direction,” Johnson said. Earlier this year it posted a £16.7 million statutory loss, with former chief Phillip Wale leaving.

Johnson has trimmed costs, cutting staff numbers from a peak of 133 to 101 today, and also closing offices.

“It’s less about the numbers and more about the people. That pressure will be more under focus. If people don’t perform we need to upgrade them,” Johnson said.

Pre-tax profits were £283,000 compared to a £225,000 loss for the same period last year.

Meanwhile, Winterflood's, the market maker owned by Close Brothers, saw operating profits plunge 23% to £19 million. Close Brothers did better overall, with pre-tax operating profits up 4% to £228.5m.