Stockbroker Arden Partners said it was likely to disappoint investors when it publishes full-year results, pointing to tough equity trading conditions and the cost of laying people off.
"Since our interim announcement on 22 June 2010, the equity trading environment has been challenging," the company said.
"In addition, in recent months the company has taken action to reduce headcount and overhead expenses and this has resulted in exceptional termination costs."
As a result Birmingham-based Arden said it was unlikely to meet market expectations for the year to 31 October.
Arden, which has a market value of about £15m, described its corporate finance pipeline as satisfactory, saying it had increased the number of corporate clients it services to 41 over the last few months.
The company also said Jeremy Grime had now assumed full responsibility for the company as chief executive while Jonathan Keeling had been formally appointed deputy chairman with a particular focus on growing its Indian business
City A.M. Reporter