Losses widen at stockbroker XCAP

WILMSLOW stockbroker XCAP Securities racked up a pre-tax loss of £4.4m last year.

This was up from a £1.4m loss last time and the business also recorded a sharp fall in revenue, from £8.8m to £5.3m, in the 12 months to the end of August.

Chairman Sir Peter Middleton said the business is undergoing a “significant cost reduction programme” to help it break even.

Since the year end the firm raised £2.4m to acquire Hampshire-based fund manager Hume Capital. Following the deal chief executive Daron Lee stepped down to make way for Hume founder  Nitin Parekh

Sir Peter said: “The acquisition and associated placing, raising approximately £2.4m, brings with it a period of financial stability for the XCAP. It also diversifies XCAP’s historically trading focused business into a larger group with a robust platform for the growth of a high quality wealth management business whilst retaining and growing its core trading divisions of market making and corporate broking.

“Our first task is to move swiftly to break even then return to profitability. XCAP, together with all its subsidiaries are undertaking significant cost reduction programmes but this is only one side of the story.

“Cost cutting is meaningless without top line growth. So I have, with the new management team, approved challenging yet achievable targets for revenue growth and these are already being implemented under the leadership of our new chief cxecutive, Nitin Parekh.”