Business
Arbuthnot Securities
Arbuthnot Securities.
About this update from Arbuthnot Banking Group Plc
[{"type":"text","content":"\n Arbuthnot Banking Group PLC\n21 March 2006\n\n\nArbuthnot Securities\n\n\nOverview\n\n\nArbuthnot Securities Ltd is the investment banking subsidiary of Arbuthnot\nBanking Group plc, which announced its results for the year ended 31 December\n2005 today. 40% of the equity of Arbuthnot Securities has been distributed or\nreserved within a Long Term Incentive Plan for employees, with 60% to be\nretained by Arbuthnot Banking Group.\n\n\nArbuthnot Securities is focused on UK growth companies, typically of a\nsmall-to-mid range capitalisation, and has two principal business streams:\nraising equity for, and providing equity and M&A advisory services to corporate\nclients, and offering research and transactional services in UK equities to\nasset management clients. In 2005 its revenues advanced 58% to reach £19.4m,\nwith all activities performing well.\n\n\nTransformation\n\n\n\nThe transformation of Arbuthnot Securities began in late 2004 and the financial\nperformance of 2005 reflects many of the improvements made. Mark Brown commenced\nhis appointment as CEO in September 2004 and swiftly effected a number of\npersonnel changes. Overall headcount was reduced by approximately a quarter, and\nthe majority of the management committee was replaced with new recruits in order\nto bring greater focus and dynamism to the business.\n\n\n\nLed by its new management, the company has made a commitment to excellence. This\nmanifests itself in a determination to accept nothing less than the highest\nethical and technical standards from all its professionals, and in an\nacknowledgement that improving the quality of the business is a continual not a\nfinite process. Serving the long-term needs of its clients moreover, is now at\nthe centre of all core activities, and the firm will never accept conflicts of\ninterest between the capital raising needs of corporate clients and the\ninvestment performance requirements of its asset management clients.\n\n\n\nThe qualitative improvements made already are starting to deliver a marked\nimprovement in financial performance. In 2005, revenues rose by 58% to £19.4m\nwhich, together with a reduction in many operating cost lines, delivered a\nprofit (before tax and exceptional items but after all bonuses) of £2.8m. This\nrepresents a marked improvement in performance from the loss of £1.5m in 2004.\n...