News blog
Dowgate Capital
- BY: Andrew Hore |
- POSTED: 21/04/2009 |
Aim adviser Dowgate Capital has released its 2008 figures and it revealed that it had been discussing a management buyout of the corporate finance business before the Blue Oar bid approach.
The proposed MBO valued Dowgate Capital Advisers at £1.5m, against a book value of £448,000. Discussions were ended because of the Blue Oar bid approach.
DCA made an operating profit of £371,000 in 2008, against a £474,000 profit in 2007. That reflects the retainer income of the business which meant that the division’s revenues dropped 7% compared with a sharp decline broking income.
Dowgate reported a 2008 loss of £2.78m, against a profit of £1.01m the previous year. That included a goodwill write-down of £1.56m on the value of the broking business and exceptional costs of £629,000 relating to the corporate broking operations.
The broking side of the group lost £1.17m due to the difficulties in raising money for businesses.
Group revenues declined from £6.25m to £5.1m. They were split equally between DCA and the broking business.
There was a cash outflow of more than £1m during the year which left Dowgate with net cash of £687,000.
Management does not expect trading conditions to get better in the short-term. There is some downward pressure on fees as well.
There is no new information about the potential Blue Oar bid of at least 6p a share.
At 6p a share, Dowgate is valued at £2.37m.
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