Poor second half follows a £0.5m loss posted for first half to December 31, 2011
Merchant bank Quayle Munro has warned its second half performance is likely to be “significantly lower" than its first half performance.
The board of the Edinburgh-based bank said it expects the number of transactions completing, and the associated revenues to be invoiced, will be significantly lower than in the first half when it posted a loss of £0.5 million.
Quayle Munro said the poor second half performance was likely to result in a pre-tax loss of the full year to June 30.
In March, the bank reported a six per cent drop in revenues to £5 million for the six months to December 31, 2011 compared to £5.3 million for the same period a year earlier.
Quayle Munro said it closed a “number of significant deals” in the first half, including the successful purchase of Northern Rock by Virgin Money, which Quayle Munro advised on through the Virgin Group.
The bank is also understood to have been approached recently to advise on the £800 million sale of energy research specialist Wood Mackenzie.
Chairman Andrew Tuckey, who is leaving the bank later this year, warned back in March full year revenues were unlikely to match the £14.7 million reported for last year.
In a trading update posted today, Quayle Munro said its board “continues to be encouraged by the pipeline of new and existing advisory business, with the possibility of major transaction completions in the early months of the new financial year”.
Three senior executives left the bank in the first half.
Managing director of the bank's corporate finance advisory business Stuart Roberts left to join Robertson Group, a longstanding client of Quayle Munro, as its new group finance director.
Andreas Wesemann, who led the Virgin Group advisory team for a number of years, has left to work with former colleagues.
And Rashmi Sinha, managing director of corporate finance, has left to pursue business opportunities in the retail sector.