Greenhill makes good (finally) on M&A promise

Revenues rose 23% year-on-year during the three months to June 30 to $ 90.5 million on the back of a “significant increase in the number and scale of completed transaction fees, offset in part by a decrease in announcement fees and lower retainer fee revenue”.

Net profits, meanwhile, which had declined on a year-on-year basis for each of the previous three quarters, more than doubled from $ 9.4 million to $ 19.6 million, according to a July 26 results statement.

The figures are a turnaround for the firm.

Greenhill’s third-quarter net profits in 2015 were all but wiped out after too few M&A deals on which it had been working closed – a narrative that continued through the final three months of the year and the first quarter of 2016.

Its founder and chairman Robert Greenhill – who had warned in October and January of delays pushing a “large majority” of the firm’s key deals into 2016 – said in April that Greenhill’s first-quarter revenues had been “constrained by the fact that almost none of our large announced transactions reached completion”.

After promising then that things would “swing back in our favour in months to come,” he sounded vindicated after the firm’s second-quarter results. “We saw a significant rebound in transaction closings for the quarter, as we had expected,” he said, adding that this had led to a 16% uptick in year-to-date revenues.

He said the “strong” quarterly results were “consistent in all respects with our commentary over the past couple quarters”.

Deals on which Greenhill was involved that closed during the second quarter included the multibillion-pound takeover by drinks can producer Ball’s of UK packager Rexam and Tesco’s sale of its restaurant chain Giraffe (pictured) to Harry Ramsden restaurant owner Boparan.

Greenhill was unavailable for further comment in time for press.

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