N+1 Singer yesterday became the latest City stockbroker to report a boost in profits last year as fundraising and dealmaking activity picked up.
However, the group warned there was still too much capacity in the small- and mid-cap market because of falling secondary commissions.
N+1 Singer’s revenue increased five per cent to £30.9m and pre-tax profit was up eight per cent to £8.8m in the 12 months to 31 December, according to documents filed at Companies House. The company has announced a dividend of 59.5p per share, an increase of 12 per cent.
N+1 Singer follows rivals such as Shore Capital and Panmure Gordon, all of whom reported a marked pick-up in performance during 2014, boosted by a rising tide of flotations.
Tim Cockcroft, the chief executive of N+1 Singer, said: “Commission unbundling is having its effects. It’s forcing us all to be more business like… There’s been overcapacity in the market for a long time. I think people will be more specialised in their areas, be it market-caps or sectors.”