Profits halve at Gleacher Shacklock as Brexit concerns weigh on markets

 
Oliver Gill
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Gleacher Shacklock said markets had become "more challenging" (Source: Getty)

Profits at Gleacher Shacklock have dived after Brexit concerns shook the boutique investment bank's finances.

Revenue for the year to December 2016 fell from £25.5m to £16.0m, while operating profit fell to £7.8m from £16.7m in 2015.

In a filing with Companies House the firm said:

The impact of a generally more challenging external market environment, affected in particular by the uncertainties created by the Brexit referendum, is reflected in an overall decline in the firm's 2016 revenue.

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Gleacher Shacklock said that despite tough markets it had delivered a number of significant mandates during the year.

It advised Coller Capital on its investment in SVG Capital. Coller supported a hostile takeover bid by US fund HarbourVest in Autumn last year. A public tussle that included a number of counter-proposals ended with HarvourVest taking control in a £1.1bn deal.

Despite a challenging 2016, it is understood 2017 has boded well for the boutique bank with a significant uptick in revenues over the first half of the year. It has also made a number of new hires including former BAE Systems chief executive Ian King

The bank's cash balances reduced from £18.2m to £6.9m, which included £4.9m being introduced by members.

The firm was founded by Tim Shacklock in April 2003 in partnership with the US company Gleacher & Co. In 2005 the firm's London bought out the business and it has traded as a partnership since that date.

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