Gleacher sees jump in turnover despite slow merger markets

Tim Wallace
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INVESTMENT bank Gleacher Shacklock will this week report increased revenues through 2011, despite choppy markets and falling profits in many larger institutions in the sector.

However profits stagnated, and the firm increased spending on staff with overall headcount increasing by six to 48.

Much of the firm’s income comes from fees on mergers and acquisitions – a particularly flat market in recent months.

Yet Gleacher Shacklock defied market conditions last year and raised revenues.

The boutique institution has continued to land major advisory roles into 2012 even as the merger and acquisition market appeared to dry up, and the initial public offerings industry largely ground to a halt.

It is one of the advisors to BAE in its mega-merger talks with fellow aerospace giant EADS, alongside investment bank heavyweights Goldman Sachs and Morgan Stanley.

Earlier in the year it worked on the GKN deal to buy Volvo’s aero engines business.

Revenues last year came in at £15m, up 4.9 per cent on the £14.3m seen in 2009.

But profits held steady at £8.3m, failing to repeat the enormous 48 per cent jump recorded from 2009 to 2010 – a leap which was largely driven by falling expenses over the year.

The group was established in 2003 by ex-Dresdner Kleinwort Wasserstein deputy chairman Tim Shacklock.