Broker Panmure Gordon in profit warning after deals are delayed to 2016
Shares in mid-market broker Panmure Gordon have crashed more than 20% after it warned that postponed deals for corporate clients meant that it will make a loss this year.
The firm, which brought Gear4Music among others to the stock market this year, said it now expects to make a loss of between £4 million and £4.5 million.
Last year it made profits of £2.15 million.
Advisers to mid and small cap brokers have seen a dearth of deals since August’s stock market rout.
Chief executive Phillip Wales said: “We had two big deals — one IPO and one secondary — lined up for November or December but given the current state of markets they have been deferred until the new year.
“It’s disappointing but the pipeline for next year is encouraging. I can’t imagine anyone in this part of the market is having a great time.”
He said 43% shareholder Qinvest, the Qatari financial services group, remained supportive and that any decision about a dividend which was restored last year after seven years would not be made until the full year results in March.
Panmure shares fell 19.5p, or 23%, to 63.5p.
