For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails
Canada’s GMP Securities is shutting its UK business as the natural resources focused stockbroker struggles to cope with the oil and mining downturns.
The closure of the firm’s London office will lead to the loss of 30 jobs and forms part of an overhaul of its struggling capital markets division.
Toronto-based GMP, which is also pulling out of Australia, is broker to a number of small oil and mining exploration outfits on AIM.
Stockbrokers have been under pressure to cut costs ever since the financial crisis which restricted the number of takeovers and stock market floats – where they make the bulk of their money.
Shares in Panmure Gordon crashed last month after it said a lack of deal-making will cause it to swing to an annual loss.
A spokesperson for GMP told the Independent : “These are the right moves as we ride out the current slowdown in capital markets, deal with fundamental changes to the underlying brokerage business, and position the firm to compete aggressively and successfully in every stage of the cycle.”
GMP confirmed that it would take a C$15 million hit from the restructuring but said the changes will save it at least C$40 million a year.
Business news: In picturesShow all 13 1 /13Business news: In pictures Business news: In pictures Flybe collapses Airline Flybe has collapsed. All future flights on the Exeter-based airline have been cancelled – leaving more than 2,300 staff facing an uncertain future, and wrecking the travel plans of hundreds of thousands of passengers. The chief executive, Mark Anderson, said: “Europe’s largest independent regional airline has been unable to overcome significant funding challenges to its business.
AFP via Getty
Business news: In pictures Future product placement will be 'tailored to individual viewers' Marketing executives say that product placement in films and televison shows on streaming services such as Netflix may be tailored to individuals in future. For instance, if data shows that a viewer is a fan of pepsi, a billboard in the background of a shot would host an advert for pepsi, while for a viewer known to have different tastes it could be for Coca-Cola
Paramount
Business news: In pictures Corbyn wishes Amazon a happy birthday In a card sent to Amazon CEO Jeff Bezos on the company's 25th birthday, Labour leader Jeremy Corbyn writes: "You owe the British people millions in taxes that pay for the public services that we all rely on. Please pay your fair share"
Business news: In pictures No deal, no tariffs The government has announced that it would slash almost all tariffs in the event of a no-deal Brexit. Notable exceptions include cars and meat, which will see tariffs in place to protect British farmers
Getty
Business news: In pictures Fingerprint payment NatWest is trialling a new bank card that will allow people to touch their hand to the card when paying rather than typing in a PIN number. The card will work by recognising the user's fingerprint
NatWest/PA Wire
Business news: In pictures Mahabis bust High-end slipper retailer Mahabis has gone into administration. 2 Jan 2019
Mahabis
Business news: In pictures Costa Cola Coca-Cola has paid £3.9bn for Costa Coffee. A cafe chain is a new venture for the global soft drinks giant
PA
Business news: In pictures RIP Payday Loans A funeral procession for payday loans was held in London on September 2. The future of pay day lenders is in doubt after Wonga, Britain's biggest, went into administration on August 30
PA
Business news: In pictures Musk irks investors and directors Elon Musk has concluded that Tesla will remain public. Investors and company directors were angry at Musk for tweeting unexpectedly that he was considering taking Tesla private and share prices had taken a tumble in the following weeks
Getty
Business news: In pictures Jaguar warning Iconic British car maker Jaguar Land Rover warned on July 5, 2018 that a "bad" Brexit deal could jeopardise planned investment of more than $100 billion, upping corporate pressure as the government heads into crucial talks
AFP/Getty
Business news: In pictures Spotif-IPO Spotify traded publically for the first time on the New York Stock Exchange on Tuesday. However, the company isn't issuing shares, but rather, shares held by Spotify's private investors will be sold
AFP/Getty
Business news: In pictures French blue passports The deadline to award a contract to make blue British passports after Brexit has been extended by two weeks following a request by bidder De La Rue. The move comes after anger at the announcement British passports would be produced by Franco-Dutch firm Gemalto when De La Rue’s contract ends in July. The British firm said Gemalto was chosen only because it undercut the competition, but the UK company also admitted that it was not the cheapest choice in the tendering process.
Business news: In pictures Beast from the east economic impact The Beast from the East wiped £4m off of Flybe’s revenues due to flight cancellations, airport closures and delays, according to the budget airline’s estimates. Flybe said it cancelled 994 flights in the three months to 31 March, compared to 372 in the same period last year.
The stockbroking arm made a third-quarter pre-tax loss of C$2.8 million on revenues of C$51.8 million. By contrast, GMP’s wealth management division made underlying earnings of C$7.7 million on revenues of C$64.9 million.
Parent company GMP Capital said the restructuring will sharpen its focus on North America, where it generated 93% of its reported revenues in 2015. The company, listed in Toronto, said it would suspend its dividend to bolster its balance sheet.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies