Evolution joins rival Collins Stewart in early season profit
STOCKBROKER Collins Stewart said yesterday that it had enjoyed a profitable May after four consecutive months of breaking even, while rival Evolution also announced that it had stayed in the black.
Collins Stewart’s revenue reached £57m for the first four months of the year, roughly unchanged on the previous year, as favourable exchange rates helped it defy difficult market conditions.
Revenue was down nine per cent, excluding the company’s US business, but cost reductions helped the business stay at breakeven.
The company, led by chief executive Mark Brown, said financial conditions had improved slightly in recent months.
But he added: “We will continue to manage the business cautiously with a focus on cash management as the general market outlook remains uncertain.”
The group held £77.5m in net cash at the end of April, up from £57.8m a year ago and the head of wealth and fund management Neil Darke signalled that Collins Stewart might use its strong cash position to “investigate growth opportunities”.
Meanwhile, Collins Stewart’s rival Evolution said that it had traded profitably in 2009 and had also increased core recurring revenues.
In a statement, Evolution said it had enjoyed “very strong growth” in fixed income revenue, where it hired 20 new staff, adding to the 45 employees it recently brought on board from Dresdner Kleinwort in its securities arm.