STOCKBROKER Panmure Gordon achieved a “significant improvement” in its operating performance during the second half of its financial year, it said today.

The business benefited from a recovery in the UK and US investment banking markets, after unfavourable conditions in both countries had driven Panmure into a £5.16m pre-tax first half loss last year following a plunge in revenues from £28.36m to £17.11m.

However, in a trading update for the year to December 31 today, the firm said both its UK and US businesses had generated operating profits in the second half, in spite of continued challenging trading conditions.

It completed a number of client transactions such as fundraising, mergers and acquisitions advisory and restructurings in the UK investment banking sector and has succeeded in adding 22 new corporate clients.

The firm also reported a “substantial improvement” in the second half for its US business interests, managing to generate operating profits in the last five consecutive months of the year and achieving an operating profit for the half year as a whole.

Today’s update revealed: “Although transactions are taking longer to complete in current markets, US investment banking revenue for the year as a whole was more than five times that recorded in the first half of the year.”

It said its UK and US investment banking businesses both report a good pipeline of deals for 2011.

Last year Panmure Gordon was linked with a possible approach by rival firm Evolution and in October announced that it considered an indicative conditional proposal by its suitor not to be in the interests of the company or its shareholders.

Today’s update revealed that all costs associated with repulsing the unsolicited bid approach will be treated as exceptional items in the full year figures which will be released on March 17.

Panmure Gordon opened its Liverpool office in Chapel Street’s Unity Building in 2007.