Blue Oar looks to the future
Blue Oar, the UK investment bank and stockbroker, told its 160 staff yesterday not to expect their end-of-year bonuses this year unless there was a “dramatic improvement” in the markets but remained buoyant about the future.
The company, whose bonuses are tied to profits, reported a pre-tax loss of £1.1m for the first half of the year, down from a £2m profit in 2007, citing difficult conditions in London’s financial markets.
Earlier this year, Blue Oar, led by chief executive Andrew Monk, warned that profits would come under pressure. And a lack of new IPOs, combined with a decrease in corporate financing, saw the firm’s fee and income commission tumble 31 per cent to £6.7m.
The parent company to private client manager Rowan Dartington also saw its cash reserves fall from £19.4m to £16.4m on the back of one off acquisition costs and bonus payments from last year.
But in an interview, Monk said the company has strong cash balances and that its restructuring and cost cutting programme was going well.
He said: “This year, there has been a complete lack of corporate business so things can only get better. Next year will be a very different year once our restructuring is finished and the board is very confident about the way things are going.”
But he said market conditions would remain challenging in the second half of 2009, before any improvement is seen.
The firm was able to maintain its interim dividend at 0.24p helped by its acquisition of Astaire & Partners.
Its shares rose by a penny yesterday to close at 10.5p.