Teather sell-off as jobs are cut?

CITY stockbroker Teather & Greenwood said today it will lose a further 10% of its workforce and admitted it had received approaches to buy its asset management business. Although it has not put the business up for sale, chief executive Keith Ford said the company was obliged to meet prospective bidders and, as a public company, would consider any offer.

Teather & Greenwood's asset management business could be worth twice as much as the company's current market capitalisation of £9.8m. It has about £1bn of assets under management.

The broker has been trying to slash costs since appalling market conditions left the formerly profitable firm nursing a loss of £3.8m in the last financial year.

At today's annual meeting, chairman Jeremy Delmar-Morgan told shareholders: 'Whilst we do not see an end in the short term to the subdued trading outlook, the board will continue to restructure the group in order to achieve a sound and profitable business, whatever the market conditions.'

He said annual operating costs had been cut from £38m to £26m, and a short-term goal of £21.5m had been pencilled in. The latest round of job losses will leave the group with a third fewer staff than it employed a year ago.

Delmar-Morgan talked up the broker's corporate finance successes, pointing out that it had won five new brokerships, and advised on the £145m acquisition of Esporta by Duke Street Capital.