Boutique stockbroker and investment bank Panmure Gordon had a tough start to the year.
Panmure Gordon, where 3 generations of UK Prime Minister David Cameron’s family were partners, said on Tuesday that it fell to a loss of £200,000 ($US303,550), from a £2 million ($US3 million) profit in the first 6 months of 2014. Revenue fell 20% to £13.1 million ($US19.88 million).
The company blamed the UK election, market turmoil in China and the political uncertainty in Greece for a big slowdown in corporate transactions. Corporate transaction revenue fell 35% to £7.5 million ($US11.38 million).
CEO Phillip Wale says in Tuesday’s statement:
The first half of the year has been challenging on account of external political and economic factors such as the UK election, disruptive market volatility in China and the political and economic fallout from Greece. Despite these challenges, I am pleased with the number of corporate transactions completed, which in total is similar to the number in 2014 though many of these executed were smaller in total value.
Wale adds that: “The markets at the start of the second half have remained challenging and subject to significant volatility, though some stability has now started to take hold.”
It’s ironic that the election has played a part in pushing the company to a loss, given Panmure’s historic connection to the Cameron family. David Cameron’s father, Ian Cameron, was the last person in the Prime Minister’s family to work at the firm.