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The month so far has seen the beginnings of consolidation among the smaller UK brokers. Ambrian Capital (AMBR:AIM) has acquired Nabarro Wells, Hichens Harrison (HICH:AIM), the oldest broker in the City, has been taken out for £55 million by Dehli-based Religare and a consortium led by the former Conservative Party treasurer, Lord Marland, is building a stake in WH Ireland (WHI:AIM).

The activity is taking place against the backdrop of the tighter regulation for Nomads on Aim which was introduced last year. Nabarro was fined £250,000 by the London Stock Exchange (LSE) in October after falling foul of the new rules.

Ambrian’s £821,000 cash acquisition of the troubled firm is also significant in that it augments the former’s already significant presence in the natural resources space – particularly on the junior market. It is now the leading nominated advisor to the basic materials sector on Aim and number two in Aim oil and gas.

House broker Collins Stewart says: ‘These two sectors are clearly one of the few where at present there is sustained investor interest. In due course we see significant synergy benefits, not just from premises costs, but more importantly the ability to convert Nomadships into brokerships, and to increase the amount of M&A work.’

Tom Gaffney, Ambrian’s CEO, adds: ‘The acquisition of Nabarro Wells is an important step in our strategy to expand our corporate client list and reinforces our commitment to the natural resources and new technology sectors.’

Hichens, which has been trading for 205 years, was targeted by Religare as it seeks not only to boost its investment banking operations and increase its geographic spread, but also gain greater access to Aim. Observers have suggested that the deal may see more Indian-based companies coming to the junior market.

The group behind the stake building in WH Ireland already owns nearly 10% of the company and aims to build that to at least 26%. As part of the transaction, consortium member and former LIFFE director Rupert Lowe will replace the current chairman and Lord Marland will become a non-executive director.

Chief executive Laurie Beevers says: ‘Having seen the company grow dramatically since David Youngman and I joined in 1995, we are delighted that Lord Marland and Mr Lowe are joining us to take the business forward to the next stage. Both have distinguished reputations and join the board as major investors committed to supporting and developing our diversified strategy.’