Canaccord Capital Inc.'s (TSX, AIM:CCI) quarterly revenue and profits hit record highs for its first fiscal quarter ending June 30, 2007.
Canaccord's quarterly revenue rose 19.3%, to $245.9 million, from $206.1 million in the same period a year ago. Growth in the company's investment banking division was the main driver of Canaccord's record quarter. Investment banking revenue rose more than 25%, to $128.6 million, from $102.8 million in the first quarter last year.
Increased activity of its Canadian operations due to heightened M&A activity and global demand for Canadian equities was the main driver for Canaccord's revenue growth. Revenue from Canadian operations rose 21.6%, to $162.1 million, from $133.2 million in the same quarter last year. Both the increase in quarterly revenue and only a 12% increase in quarterly expenses also led to Canaccord realizing a record quarterly profit. Quarterly net earnings increased 50.4%, to $39 million, compared with a quarterly profit of $25.9 million a year ago.
Canaccord also announced that Peter Brown, the company's founder, has stepped down as CEO after 40 years building the business. Canaccord's president Paul Reynolds is the new CEO. Brown will continue on as Canaccord's chair. Canaccord's share price range during the past week: between $19.70 and $20.55; 52-week high: $25.92; 52-week low: $15.80.