Quayle Munro profits hit by Edinburgh exit

Merchant bank Quayle Munro, which announced in July that it was selling off its Edinburgh-based project advisory business, today said the shake-up had cost it £1.2 million.

As a result of costs associated with the sale and other expenses, the group fell to an operating loss of £7m for the year to 30 June, compared with a £446,000 profit a year earlier.

Revenues from continuing operations slumped to £5.3m, from £11.5m last time, which chairman Andrew Tuckey said was due to the timing of deal completions.

He added: “A number of these deals have now completed and as a result the current financial year has begun strongly.

“This, taken together with an encouraging pipeline of new business and a significantly lower cost base, promises well for the year and we are confident in achieving a good result for our shareholders.”

Quayle Munro decided to sell its Edinburgh operation after deciding it was no longer a core part of the business and was “not viable in its current structure”.

Today said it said the deal had been completed, with management of the project advisory business – called Quayle Munro Project Finance (QMPF) paying £1 to take on its current workload.

Quayle Munro will retain a 30 per cent stake in QMPF, give it £375,000 in cash for working capital and provide a loan facility of up to £375,000, repayable by 30 June 2015.

The management of QMPF, which will focus on the education, infrastructure and renewables sectors, will be able buy out its former parent company’s stake from the start of next year, subject to earnings targets being met.

Andrew Adams, chief executive of Quayle Munro, said: “We are pleased to have completed the disposal of our project advisory business to our former colleagues in Edinburgh and we wish them well in the future.

“Quayle Munro will now focus its efforts on continuing to develop the London-based corporate finance business. The prospects for our London business remain positive.”