Westhouse into the black

15/04/2010 Robert Tyerman

Broker Westhouse Holdings is starting to make markets after its AIM float acquisition turned £709,200 annual losses into £1.2 million pre-tax profits.

Originally called Hanson Westhouse before takeover tycoon Lord Hanson’s son Robert left to form investment outfit Strand Hanson, Westhouse Holdings moved into the black last year, thanks to a £1.24 million gain on its reverse acquisition of Jersey-based finance house SovGEM, which accompanied last year’s AIM flotation. Commenting on 2009’s 6.7 per cent increase in turnover to £45.8 million, chief executive William Staple says trading was ’disappointing' last year, though he argues the company, with star veteran City backing, now has ‘the structure in place’ to build up its business.

Westhouse luminary Simon Doyle has assembled a team to make markets in Westhouse’s 35 corporate clients and in the companies covered by its research analysts. Westhouse, which hoisted net assets 245 per cent to £6.8 million and closed 2009 with cash nearly trebled to £1.75 million, is not proposing a dividend.

Noting the company has strengthened its smaller companies corporate finance team by recruiting Evolution Securities stalwart Tom Price as well as hiring new sales and research people, Staple says Westhouse wants to add technology, non-bank financial services and property to its present focus on resources. The company is nominated adviser and broker to seven Chinese companies and is trying to achieve a similar position with Indian companies, a somewhat slower process.

Westhouse shares have fluctuated between 82p and 23.75p over the past 12 months. Now 60.5p, up 4.5p this morning, they value the company at £6.9 million.