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Arden partners cuts pay after equity trading loss
1st May 2020 10:39
(Sharecast News) - Arden Partners has cut pay for all employees after the stockbroker's equity trading business suffered big losses from the Covid-19-induced market decline.
The company said it expected to cut total costs by more than 25% in the current year after reducing salaries and fees by 40% for board members and some senior employees. Other employees will make salary sacrifices and some staff have been furloughed.
Reporting on trading for the six months to April, Arden said it made a good start to the period but that business was hit by the Covid-19 market crash towards the end.
"We anticipate materially higher corporate finance revenues, higher retainer levels but lower equity commissions," Arden said. "The equity trading operation suffered material losses as markets fell in response to Covid-19."
The equity trading losses will send Arden to a loss for the first half though it will be smaller than the £1.6m loss a year earlier, it said. Arden said it had a strong balance sheet and was open for business and signing up quality clients.
Chairman Mark Ansell said: "The Covid-19 crisis has presented unprecedented challenges to our business. However, it remains in a strong financial position and we have taken the necessary actions to enable us to confront the current market environment without harming our ability to fully service our clients. The board is indebted to the company's employees for their hard work and ongoing support in light of these challenges."
Arden said it had cancelled or deferred discretionary spending and delayed payment of VAT under the government's programme to support businesses.
The company said it expected to cut total costs by more than 25% in the current year after reducing salaries and fees by 40% for board members and some senior employees. Other employees will make salary sacrifices and some staff have been furloughed.
Reporting on trading for the six months to April, Arden said it made a good start to the period but that business was hit by the Covid-19 market crash towards the end.
"We anticipate materially higher corporate finance revenues, higher retainer levels but lower equity commissions," Arden said. "The equity trading operation suffered material losses as markets fell in response to Covid-19."
The equity trading losses will send Arden to a loss for the first half though it will be smaller than the £1.6m loss a year earlier, it said. Arden said it had a strong balance sheet and was open for business and signing up quality clients.
Chairman Mark Ansell said: "The Covid-19 crisis has presented unprecedented challenges to our business. However, it remains in a strong financial position and we have taken the necessary actions to enable us to confront the current market environment without harming our ability to fully service our clients. The board is indebted to the company's employees for their hard work and ongoing support in light of these challenges."
Arden said it had cancelled or deferred discretionary spending and delayed payment of VAT under the government's programme to support businesses.