Source - RNS
RNS Number : 8761K
Panmure Gordon & Co. plc
27 September 2016
 

                                                                                                                                    27 September 2016

 

 

 

Panmure Gordon & Co. plc

 

 

Interim results

 

London, 27 September 2016 - Panmure Gordon & Co. plc ("Panmure Gordon" or "the Group"), a leading independent stockbroker and investment bank, today announces its results for the first half ended 30 June 2016.

 

 

Key points

 

·      Growth of 14.0% in total net commission and fee income to £14.9m (H1 2015: £13.1m)

·      Profit before non-recurring items and tax £1.7m (H1 2015: profit of £0.2m)

·      Pre-tax profit of £0.3m (H1 2015: loss of £0.2m)

·      Post-tax profit of £0.2m (H1 2015: loss of £0.2m)

·      Earnings per share of 1.08p (H1 2015: loss per share of 1.09p)

·      Strategic investment in PrimeXtend, a business focussed on the evolution of agency broker services Continued support and cooperation from Qinvest, including the granting of a £5m funding facility in February of which £3m has been drawn down

 

Patric Johnson, Chief Executive, commented:

 

I am pleased to report a positive start to the year particularly bearing in mind the significant volatility in the market leading up to the European Referendum.  Business activity in July and August has continued to be encouraging including the first post-referendum technology AIM market IPO in August. However, continued market volatility following the result of the Referendum poses significant challenges for the medium term.

 

Despite the market volatility however, we executed 29 transactions including nine M&A deals and five IPOs which maintains our position within the top brokers in the AIM space. Together with the realignment of the business along sector lines, we have removed a significant level of annualised costs and we continue to drive efficiencies within our model. Critical to the positive momentum in our business are our relationships with our institutional clients and our ability to distribute quality transactions. We are pleased to report that Panmure Gordon sponsored IPO activity since January 2015 has returned a net gain of just over 30% for such clients.

 

We remain committed to the longer term strategic realignment of the business with additional investments to diversify our income and continuing to invest in quality people who remain at the heart of our business. We do however remain conservative in our outlook for the remainder of 2016."

 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

 

 

 

 

Enquiries:

 

Panmure Gordon

Patric Johnson, Chief Executive

Philip Tansey, Chief Financial Officer                                                                             020 7886 2500

 

Buchanan (Financial PR)

Bobby Morse

Stephanie Watson                                                                                                       020 7466 5000

                                                                                                                                                      

Grant Thornton UK LLP (Nominated Adviser)

Philip Secrett/Salmaan Khawaja/Jen Clarke                                                                   020 7383 5100

 


 

 


 

 


 

Chief Executive's Review

 

Significant changes made to Panmure Gordon's cost base and the reorganisation around sector teams are starting to bear fruit. The first half of the year witnessed some of the most significant political shocks of recent years during the run-up to, and then following, the June European Referendum vote. Market sentiment and volatility have been severely impacted, though the indications are that some level of stability is returning to the market. With this backdrop, I am therefore even more pleased to see a positive first half of the year. This positive start to the year is despite the significant charge for the restructuring in H1, including redundancy costs of £1.4m.

 

We have assisted clients raise over £600m across 29 transactions including four successful UK IPOs and one on AIM Italia. Corporate finance and related income rose by 34.4% to £10.1m (H1 2015: £7.5m) in what was a challenging, but busy, six months. Total net commission and fee income has increased by 14.0% in H1 2016 to £14.9m (H1 2015: £13.1m). Total commission and trading for H1 2016 for the core UK business also showed a net increase on a like-for-like basis, with a 5.3% increase in net commission and trading income at £5.1m (H1 2015: £4.8m) despite the trend in declining volumes across the main stock markets on a year-on-year basis continuing in 2016. Overall however, net commission and trading income has shown a net decrease of 9.1% to £5.2m (H1 2015: £5.7m) on account entirely of the closure of our Swiss office.

 

QInvest

Panmure Gordon continues to enjoy an excellent relationship with its major shareholder, Qinvest, and in March drew down £3m of the £5m financing facility that was made available to assist growth plans for the future whilst providing further liquidity for ongoing business.

 

PrimeXtend

In continuing our efforts to diversify our income whilst not altering the core DNA of our business and culture we were delighted to announce on 22 September that we exchanged contracts for an exciting strategic investment in a new company, PrimeXtend Limited. We will inject a maximum investment of £2m over a period of ten months, subject to the achievement of certain milestones, for an initial 49% shareholding. PrimeXtend will set up the necessary straight through processing infrastructure and, in close partnership with Panmure Gordon, develop new markets in agency broking of a variety of asset classes to a wide range of institutions that are currently suffering from a lack of liquidity and broker options in the market. 

 

Switzerland

Panmure Gordon has operated in Switzerland since 2007 through a representative office in Nyon. Limited opportunities for growth coupled with the longer-term history of losses led to the decision to cease regulated activity in January and to close the office. The business was sold to a third party who committed to continuing the business with the same staff under their own regulatory licences and we wish them well for the future. The impact of the closure of the office on the results for H1 2016 is a cost of £0.2m.

 

Singapore

The Singapore office introduced a number of excellent clients that resulted in transactions executed in the London market. However, it was felt that a local presence with the attached costs would not be justified in the future and the decision was taken therefore to close the office and the local legal entity.

 

Outlook

 

We have recorded an encouraging start in the first six months of the year with the new sector based structure, designed to maximise the high standard of service to our clients, beginning to yield results. We have started to see the benefit from the operational efficiencies put in place and this will become more impactful as the year moves into the second half.  We will continue to invest on a selective basis in both people and opportunities to further our client-centric business model, as well as seek other business prospects whilst remaining focussed on optimising the cost base within this evolving environment.

 

Markets are still digesting the full impact of the June European Referendum and as the eventual outcome becomes clearer so we should see further moves to a stabilising economy. We have begun the second half on a positive note with the first AIM market post-referendum technology IPO as well as a number of significant fund raises and advisory transactions already completed. Our pipeline of corporate transaction activity appears robust though, as ever, remains to be executed. We have a strong and supportive major shareholder in QInvest and a clear sector-focused team structure filled with excellent people that provide us with some reassurance when set against the continuing uncertainties of the second half. We remain conservative in our outlook for the remainder of the year.

 

Patric Johnson

Chief Executive

 

Condensed consolidated interim statement of profit or loss and other comprehensive income (unaudited)

 

For the half year to 30 June 2016

 

 

 

£'000

 

 

Notes

 

 

 

6 months

30 June

2016


6 months

30 June

2015


12 months

31 December

2015









 

 

Commission and trading income



5,697


6,321


11,687

 

Commission and trading expense



(533)


(641)


(1,180)

 

Net commission and trading income



5,164



10,507

 









 

Corporate finance and related income



10,122


7,534


12,788

 

Loss on corporate investments



(364)


(127)


(270)

 








 

Net commission and fee income



14,922



23,025

 









 

Administrative expenses1



(12,814)


(12,667)


(26,493)

 

Redundancy, restructuring and other non-recurring        charges1



(1,387)


(376)


(1,730)

 

Operating profit/(loss) before share-based payments



721



(5,198)

 









 

Share-based payments1



(355)


(264)


(470)

 

Goodwill impairment1



-


-


(13,201)

 









 

Operating profit/(loss)



366



(18,869)

 









 

Financial income



-


-


1

 

Financial expense



(83)


(5)


(17)

 









 

Net financial expense



(83)


(5)


(16)

 









 

 

Profit/(loss) before tax



 

283


 


(18,885)

 









 

Taxation

3


(115)


55


2,210

 








 

 

Profit/(loss) for the period



 

168


 


(16,675)

 








 









 

Total comprehensive income/(loss)



168


(170)


(16,675)

 









 

Basic profit/(loss) per share

4


1.08p


(1.09)p


(107.3)p

 

Diluted profit/(loss) per share

4


1.00p


(1.09)p


(107.3)p

                                               

1   Administrative expenses which total £14.6m (6 months 30 June 2015: £13.3m, 12 months 31 December 2015: £41.9m) have been presented separately here owing to their individual nature and size

 

The following notes form part of these financial statements.

.


Condensed consolidated interim statement of financial position (unaudited)        

 

At 30 June 2016

 

£'000

 

 

Notes


As at

30 June

2016


As at

30 June

2015


As at

31 December

2015

Assets








Goodwill and intangibles



1,769


13,201


2,012

Plant and equipment



1,565


1,922


1,913

Available for sale investments



100


100


100

Deferred tax asset



1,424


523


1,547

Other receivables

6


363


471


409

Total non-current assets



5,221


16,217


5,981









Securities held for trading

8


7,728


8,600


5,804

Trade and other receivables

6


50,160


41,402


20,239

Cash and cash equivalents



4,643


4,254


4,985

Total current assets



62,531


54,256


31,028









Current liabilities








Trade payables

7


(42,491)


(31,532)


(14,115)

Tax and social security



(512)


(562)


(601)

Corporation tax liabilities



(49)


(195)


-

Other payables

7


(3,636)


(2,465)


(4,126)

Held for trading liabilities

8


(1,077)


(1,922)


(1,595)

Total current liabilities



(47,765)


(36,676)


(20,437)









Net current assets



14,766


17,580


10,591









Financing facilities



(3,000)


-


-

Deferred tax liability



(304)


(1,109)


(338)

Total non-current liabilities



(3,304)


(1,109)


(338)









Net assets



16,683


32,688


16,234









Equity








Issued share capital

5


622


622


622

Merger reserve



21,810


21,810


21,810

Other reserve



(8,186)


(7,960)


(8,112)

Retained earnings



2,437


18,216


1,914

Total equity



16,683


32,688


16,234









 

 

The following notes form part of these financial statements.



Condensed consolidated interim statement of cash flows (unaudited)

 

 

 

 

£'000



6 months

30 June

2016


6 months

30 June

2015


  12 months

31 December

2015

 

Cash flows from operating activities







Profit/(loss) after tax


168


(170)


(16,675)

 

Net financial expense


83


5


16

 

Depreciation and amortisation


433


217


421

 

Intangibles impairment and amortisation


-


-


13,404

 

Movement in securities held for trading


(2,442)


(3,446)


(976)

 

Decrease/(increase) in amounts owed by market counterparties


171


(780)


(449)

 

Increase in trade and other receivables


(1,250)


(3,123)


(119)

 

(Decrease)/increase in trade payables and provisions


(788)


(311)


1,686

 

IFRS 2 share-based payments and related charges


355


264


470

 

Income tax expense/(credit)


115


(55)


(2,210)

 

Net cash flow from operating activities


(3,155)


(7,399)


(4,432)

 

 








 

Cash flows from investing activities







 

Financial income received


-


-


1

 

Acquisition of plant and equipment


(57)


(95)


(288)

 

Acquisition of available for sale investments


-


(100)


(100)

 

Acquisition of intangible assets


28


-


(1,877)

 

Net cash from investing activities


(29)


(195)


(2,264)

 








 

Cash flows from financing activities







 

Purchase of own shares for EBT


(78)


(173)


(326)

 

Financial expense


(83)


(5)


(17)

 

Financing facility


3,000


-


-

 

Repayment of EBT loan


3


3


4

 

Dividend paid


-


(363)


(366)

 

Net cash from financing activities


2,842


(538)


(705)

 








 

Net decrease in cash and cash equivalents


(342)


(8,132)


(7,401)

 

Cash and cash equivalents at 1 January


4,985


12,386


12,386

 

Cash and cash equivalents at 30 June / 31 December


4,643


4,254


4,985

 

 


Condensed consolidated interim statement of changes in equity for the half year to 30 June 2016

 

£'000

Issued share capital

Merger reserve

Other reserve

Retained earnings

Total equity

At 1 January 2016

622

21,810

(8,112)

1,914

16,234

Total comprehensive income for the period






Profit for the period

-

-

-

168

168

Other items recorded directly in equity

 






Dividend payment

-

-

-

-

-

Share-based payments

-

-

-

355

355

Purchase of own shares for EBT

-

-

(78)

-

(78)

Decrease in shares held by EBT

-

-

4

-

4

At 30 June 2016

622

21,810

(8,186)

2,437

16,683

 

Condensed consolidated interim statement of changes in equity for the half year to 30 June 2015

 

£'000

Issued
share
capital

Merger reserve

Other reserve

Retained earnings

Total
equity

At 1 January 2015

622

21,810

(7,790)

18,485

33,127

Total comprehensive income for the period






(Loss) for the period

-

-

-

(170)

(170)

Other items recorded directly in equity






Dividend payment

-

-

-

(363)

(363)

Share-based payments

-

-

-

264

264

Purchase of own shares for  EBT

-

-

(173)

-

(173)

Decrease in shares held by EBT

-

-

3

-

3

At 30 June 2015

622

21,810

(7,960)

18,216

32,688

 



 

Consolidated statement of changes in equity for the year ended 31 December 2015

 

 

£'000

Issued share capital

Merger reserve

Other reserve

Retained earnings

Total

equity

 

At 1 January 2015

622

21,810

(7,790)

18,485

33,127

 

Total comprehensive income

for the period






 

(Loss) for the year

-

-

-

(16,675)

(16,675)

 

Other items recorded

directly in equity

 






 

Dividend payment

-

-

-

(366)

(366)

 

Share-based payments

-

-

-

470

470

 

Purchase of own shares for

EBT

-

-

(326)

-

(326)

 

Decrease in shares held by

EBT

-

-

4

-

4

 

At 31 December 2015

622

21,810

(8,112)

1,914

16,234






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 

 

 

 
























1          Legal status and basis of preparation

 

1.1        Legal status

 

Panmure Gordon & Co. plc (the "Company") is a company domiciled in the United Kingdom.  The address of the Company's registered office is One New Change, London, EC4M 9AF.  The consolidated interim financial statements of the Company for the 6 months ended 30 June 2016 relate to the Company and its subsidiaries (together referred to as the "Group").

 

1.2        Basis of preparation and statement of compliance with International Financial Reporting Standards

 

The interim consolidated financial statements of the Group have been prepared in accordance with IAS 34 Interim Financial Reporting as issued by the International Accounting Standards Board ('IASB') and as endorsed by the EU.  They do not include all of the information required for full annual financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2015, which were prepared in accordance with International Financial Reporting Standards ('IFRSs') as issued by the IASB and as endorsed by the EU.  EU-endorsed IFRSs may differ from IFRSs as issued by the IASB if, at any point in time, new or amended IFRSs have not been endorsed by the EU. 

 

The accounting policies are consistent with those applied by the Group in its 2015 annual financial statements.  During the period ended 30 June 2016, the Group adopted a number of amendments to standards and interpretations which did not have a significant effect on the consolidated financial statements of the Group.

 

The Directors note that the business was profitable during the period and loss making during the previous financial year and the Group had cash resources of £4.6m at 30 June 2016 (2015: £4.3m) and short term borrowings of £3m (2015: nil).  The Directors believe that the Group has adequate resources to continue in operational existence for the foreseeable future.  Accordingly, they continue to adopt the going concern basis in preparing these interim results.

 

1.3        Comparative information

 

These interim consolidated financial statements include comparative information as required by IAS 34 and the AIM Rules for Companies.

 

The comparative figures for the financial year ended 31 December 2015 are not the Company's statutory accounts for that financial year. Those accounts have been reported on by the Company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

1.4        Use of estimates and assumptions

 

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. Judgements made by management in the application of adopted IFRSs that have a significant effect on the financial statements and estimates with a significant risk of material adjustment are discussed in note 1.1 within the Report and Financial Statements 2015 The areas highlighted in the year-end financial statements include:

 

i)    Goodwill and investment in subsidiaries

ii)   Deferred tax

iii)   Provisions

iv)   Share-based payments

v)    Intangible assets

 

 

 

2          Segmental analysis

 

The Group reports its operating segments according to how the Group's Chief Operating Decision Maker (CODM) allocates resources to each segment and assesses performance.  In this respect the Group's CODM has been defined as the Group's CEO.  

 

The geographical division is made between the UK and Swiss operations only.  In the segmental table below, the results of the Swiss office appear in the 'Other' column.  It was decided to cease regulated activity in January and to close the office. The impact of the closure of the office on the results for H1 2016 is a cost of £0.2m

 

 There are no major customers that regularly account for more than 10% of revenue.

 

Segmental analysis for the 6 months to 30 June 2016, the 6 months to 30 June 2015 and the 12 months to 31 December 2015, reconciled to the income statement

 


UK

Other

Total












6 months

    30 Jun

       2016

6 months

    30 Jun

       2015

12 months

    31 Dec

       2015

6 months

    30 Jun

       2016

6 months

    30 Jun

       2015

12 months

    31 Dec

       2015

6 months

    30 Jun

       2016

6 months

    30 Jun

       2015

12 months

    31 Dec

       2015


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Net commission and trading     income

 

5,096

 

4,840 

 

9,280

 

68

 

840

 

1,227

 

5,164

 

5,680

 

   10,507

Corporate finance fee income

9,859

6,852

11,896

10

19

37

9,869

6,871

   11,933

Loss on corporate         investments

 

(364)

 

(127)

 

(270)

 

-

 

-

 

-

 

(364)

 

(127)

 

      (270)

Wealth management and other income

 

253

 

663  

 

855

 

-

 

-

 

-

 

253

 

663

 

        855

Net loss on AFS         investments

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

-

 

            -

Foreign exchange loss

(3)

(15)

73

-

(2)

(2)

(3)

(17)

          71

On-going administration costs

(12,533)

(11,884)

(25,252)

(278)

(766)

(1,312)

(12,811)

(12,650)

(26,564)

Goodwill impairment

-

-

(13,201)

-

-

-

-

-

 (13,201)











Segmental operating         profit/(loss)

 

2,308

 

329

 

(16,619)

 

(200)

 

91

 

(50)

 

2,108

 

420

 

(16,669)









Redundancy and restructuring         charges

 

(1,387)

 

(376)

 

(1,730)

 

-

 

-

 

-

 

(1,387)

 

(376)

 

   (1,730)

Share-based payment         charges

 

(355)

 

(264)

 

(470)

 

-

 

-

 

-

 

(355)

 

(264)

 

      (470)











Operating profit/(loss)

566

(311)

(18,819)

(200)

91

(50)

366

(220)

(18,869)











 

Net financial expense       

 

(83)

 

(5)

 

(16)

 

-

 

-

 

-

 

(83)

 

(5)

 

        (16)











Profit/(loss) before tax

483

(316)

(18,835)

(200)

91

(50)

283

(225)

(18,885)











 

Income tax

 

(110)

 

72

 

2,234

 

(5)

 

(17)

 

(24)

 

(115)

 

55

 

     2,210











Profit/(loss) for the period   

373

(244)

(16,601)

(205)

74

(74)

168

(170)

(16,675) 

 

Net assets

UK

Other1

Total












      As at

    30 Jun

       2016

      As at

    30 Jun

       2015

      As at

    31 Dec

       2015

      As at

    30 Jun

       2016

      As at

    30 Jun

       2015

      As at

    31 Dec

       2015

      As at

    30 Jun

       2016

      As at

    30 Jun

       2015

      As at

    31 Dec

       2015


£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000











Non-current assets (inc   goodwill)

5,221

16,217

5,981

-

-

-

5,221

16,217

5,981

Current assets

62,531

54,256

31,028

-

-

-

62,531

54,256

31,028

Current liabilities

(47,765)

(36,676)

(20,437)

-

-

-

(47,765)

(36,676)

(20,437)

Non-current liabilities

(3,304)

(1,109)

(338)

-

-

-

(3,304)

(1,109)

(338)

Capital expenditure

(57)

(95)

(288)

-

-

-

(57)

(95)

(288)

            1The Swiss business operated as a representative office of the UK business and therefore shared assets with the UK business

 

 

 

 

3          Taxation

 

The current tax charge for the period is different from the standard rate of corporation tax in the UK of 20.00% (2015: 20.25%).

 

Tax on profit on ordinary activities:

6 months

30 June

       2016


6 months

   30 June

        2015



   12 months

31 December

                      2015


£'000


       £'000



£'000

Analysis of tax charge in period:







      UK corporation tax at 20.25% (2014: 21.50%)







                Prior year adjustments

-

-



2

                Current year tax charge

-


-



-

                Foreign tax adjustments

(9)

(20)


-


(9)


(20)



2

Deferred tax







      Prior year adjustments to deferred tax credit

-


4



338

      Current year deferred tax credit/(charge)

(106)


71



1,870


(106)


75



2,208








Tax (charge)/credit on profits on ordinary activities

(115)


55



2,210

 







Effective tax rate:

40.6%


(24.4)%



(11.7)%

 







Factors affecting tax (charge)/credit:







 







Profit/(loss) on ordinary activities before tax

283


(225)



(18,885)

Profit/(loss) on ordinary activities multiplied by rate of UK      corporation tax at 20.00% (2015: 20.25%)

(57)


45



3,824








Effects of:







Expenses not deductible for tax purposes

10


(49)



(24)

Impairment of consolidated goodwill not deductible for tax purposes

-


-



(2,673)

purposes







Differences relating to share schemes

(71)


71



(105)

Foreign tax

(5)


(17)



(22)

Change in corporation tax rate

15


-



(216)

Deemed goodwill amortisation

-


53



-

Goodwill on consolidation

-


(53)



-

Impairment of consolidated goodwill write off on deferred tax

-


-



1,058

liability







Charles Stanley Securities intangible

(6)


-



-

Adjustment to tax charge in respect of previous periods

(1)


5



368








Total tax (charge)/credit on profits on ordinary activities

(115)


55



2,210

 

 

At 30 June 2016 the Group has recognised a deferred tax asset relating to UK losses carried forward. 

 



 

4          Earnings per share

 

Earnings per share (EPS) are calculated on a net basis using the profit on ordinary activities after taxation divided by the weighted average number of shares detailed below.

 

Total Group

 



6 months


6 months


12 months



30 June


30 June


31 December



2016


2015


2015








Weighted average number of ordinary shares in issue


15,545,473


15,545,473


15,545,473








Fully diluted weighted average number of ordinary shares in issue


16,771,419


16,434,444


15,682,490








Basic profit /(loss) per share


1.08p


(1.09)p


(107.3)p








Diluted profit /(loss) per share


1.00p


(1.09)p


(107.3)p

 

 

5          Share capital and reserves

 

The Company issued no new shares during the six months to 30 June 2016.

 

As at 30 June 2016, the number of shares in issue was 15,545,473 ordinary shares at a par value of 4p (30 June 2015: 15,545,473 ordinary shares at a par value of 4p).  The fully diluted number of ordinary shares was 16,771,419 (30 June 2015: 16,434,444).

 

The 'other reserve' includes the nominal value of share capital owned by the Panmure Gordon & Co. plc No. 2 Employee Benefit Trust (the "Trust") in respect of the 2005 Employee Share Option Plan and the cost of shares purchased in the market.  At 30 June 2016 the Trust held 1,093,836 ordinary shares (December 2015: 1,272,354 ordinary shares).

 

 

6          Trade and other receivables

 



As at


   As at


As at

 



30 June


30 June


31 December



2016


2015


2015



£'000


£'000


£'000

Non-current assets







Other receivables


363


471


409

Total


363


471


409

Current assets







Trade receivables


1,507


675


1,666

Stock borrow1


1,573


2,694


1,298

Market receivables


43,135


32,732


14,510

Other receivables


1,103


2,069


1,404

Prepayments and accrued income


2,842


3,232


1,361

Total


50,160


41,402


20,239

1          Stock borrow reflects collateral placed against the value of stock borrowed.

 

The level of market receivables at a period end is dependent on the level of agency and trading activity in the preceding days.  Within non-current assets, other receivables represent loans made to employees under the Group's Matching Share Plan.    

 

 

7      Trade and other payables

 



As at


As at


As at



30 June


30 June


31 December



2016


2015


2015



£'000


£'000


£'000

Market payables


(41,782)


(30,877)


(12,987)

Trade payables


(709)


(655)


(1,128)

Total trade payables


(42,491)


(31,532)


(14,115)








Other payables


(1,481)


(659)


(1,895)

Provisions, accruals and deferred income


(2,155)


(1,806)


(2,231)

Total other payables


(3,636)


(2,465)


(4,126)

 

 

 

The level of market payables at a period end is dependent on the level of agency and trading activity in the preceding days. 

 

Litigation

 

In the normal course of business there may be various litigation claims and contingencies pending against the Group which, in the opinion of management, will be resolved with no material impact on the Group's financial position or results of operations.

 

 

 

8      Financial Instruments

The group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.  The different levels have been defined as follows:

 

§ Level 1:  quoted prices (unadjusted) in active markets for identical assets or liabilities

§ Level 2:  inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

§ Level 3:  inputs for the asset or liability that are not based on observable market data (unobservable inputs).

 

The table below analyses financial instruments carried at fair value by valuation method.

 

Group

At 30 June 2016


At 30 June 2015


Level 1

Level 2

Level 3

Total


Level 1

Level 2

Level 3

Total











Available for sale assets

-

-

100

100


-

-

100

100

Assets held for trading

4,532

3,196

-

7,728


6,190

2,323

87

8,600

Liabilities held for trading

(627)

(450)

-

(1,077)


(1,628)

(294)

-

(1,922)

 

 

 



At 31 December 2015



Level 1

Level 2

Level 3

Total







Available for sale assets


-

-

100

100

Assets held for trading


3,216

2,584

4

5,804

Liabilities held for trading


(1,240)

(355)

-

(1,595)

 

 

There have been no transfers of assets between the levels noted above in the period under review.

 

 

9       Investment

 

On 22 September 2016 Panmure Gordon exchanged contracts to make an all-cash investment in a new company, PrimeXtend Limited, of up to a maximum of £2m over a period of ten months, subject to the satisfaction of certain performance milestones, for an initial 49% shareholding with the balance retained by Xtend Group Limited. PrimeXtend Limited will operate under Panmure Gordon's name.

 

 

10       General

 

The interim report was approved by the Board of Directors on 26 September 2016.

 

On account of the reducing level of complexity of the business and the increased simplicity of the associated accounting the Board considered it unnecessary to engage KPMG, auditors to the Group, to conduct a review of the financial statements in this half-yearly report for the six months ended 30 June 2016.

 

This report will be made available to the public, upon request, at the registered office of Panmure Gordon & Co. plc, One New Change, London EC4M 9AF or from the Company's website www.panmure.com.

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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