The investment bank and stockbroker, Panmure Gordon, has had a decent morning on the markets after revealing a turnaround in profits following last year's cost cutting programme.

Earnings from continuing operations were £1.2m in the six months to the end of June with every month during the period yielding a profit. In the equivalent period of 2011 the group turned in a loss of £2.7m.

Commissions and fee income rose 18% to £11.2m driven by a 41% increase in transaction revenues.

The firm is debt free and administration expenses are down 24% after the disposal of the US business in June and savage cost cutting executed last year.

The Chief Executive, Phillip Wale said: "I am delighted that, in subdued markets, we are a broker-of-choice for dynamic companies seeking a successful flotation in London and we have an encouraging pipeline of investment banking mandates.

"Market conditions remain challenging, but with the full support of our major shareholder, QInvest, our simplified structure and improving quality of earnings, we look to the second half with confidence."

Panmure Gordon shares were up 6.5% in morning trading.

BS

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