View more on these topics

Merchant House chief exec steps down

Merchant House Group chief executive Chris Day has stepped down from the company with immediate effect.

Merchant House managing director James Keane is assuming the chief executive role. Day will remain on the board of Merchant Capital, the company’s structured products arm.

His departure comes after Merchant House Group posted an operating loss of £1.4m for the first six months of the year and told the market it will need to raise additional funds on top of its recent £2m funding injection.

The company is considering asset or business disposals to shore up its capital, and has not ruled out a sale of its IFA arm Merchant House Financial Services. There is also a risk Merchant House Group will cancel trading on AIM. Merchant House shares have been suspended since mid-April pending the outcome of a financial review.

Merchant House Group announced in June it had secured a £2m funding injection from turnaround investment firm Beia. The final £400,000 of funding from Beia is expected before 22 November but the group said earlier this week “it is clear that additional funds will be required in the short term to provide sufficient working capital and investment in the business”.

Merchant Capital’s UK business was hit after former custodian Pritchard Stockbrokers was suspended by the FSA from regulated activities in February. All £350m of clients’ non-cash assets were transferred to new custodian Reyker Securities in March.

Merchant House made a pre-tax loss of £5.6m for 2011. Merchant House Financial Services reported a £2.4m loss following authorisation delays relating to 120 former advisers from Clarkson Hill, which Merchant House bought from administration in December 2011.

Equilibrium Asset Management investment manager Mike Deverell says: “It may be that Chris Day has taken the bullet for the company’s past performance. If Merchant House is needing all these capital injections, plus the loss, then all is clearly not well. The advisers are bound to be worried and may already be on the lookout for new jobs.”

Recommended

2

Ex-PosSol chief Reeve joins 2020 Innovations Limited

Accountancy and tax support firm 2020 Innovations Limited has appointed former Positive Solutions chief executive Jim Reeve as a director. 2020 says Reeve’s new role will see him chair the firm’s board and focus on developing strategic with product and service providers. Reeve (pictured) quit PosSol in February and launched consultancy firm Signature Private Clients […]

12

Justice minister: ‘Never use claims chasers’

Justice minister Lord Tom McNally has told consumers they should never use claims management firms when seeking redress. Speaking in the House of Lords today, McNally, whose department regulates the sector, hit out at the “absolute nuisance” of phone calls, texts and emails from chasers. He said: “The general advice is that customers should never […]

1

Jupiter Merlin Growth cuts cash for developed markets

The Jupiter Merlin Growth fund has cut its holding in cash from 11 per cent to less than 1 per cent after piling into developed market equities. According to FE Analytics, the Merlin team increased its exposure to UK, Europe and US equities. The team increased its UK exposure from 29 per cent to 34 […]

David Aird: Traditional fund of funds may go same way as the dinosaur

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” How right Charles Darwin was and how relevant his clear thinking remains to the ever-changing complexities of modern financial markets. Since the early 1990s, traditional fund of funds […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com