(Bloomberg) -- A raft of equity traders have left Winterflood Securities Ltd. in recent months, adding to the list of worries for the London broker’s parent firm Close Brothers Group Plc.
At least nine traders have departed, according to people familiar with the matter. Rory Meecham and Jack Harper have left to join Stifel Financial Corp., while Danny Want is joining BTIG and Lewis Brennan was hired by Panmure Liberum Ltd., some of the people said, asking not to be identified discussing non-public information.
Tom Williams, who spent more than a decade at Winterflood and had risen to be a senior market maker at the firm, announced he’s joining rival Shore Capital Markets as head of large-cap trading. The exits have also included James Bastick, Frankie Bennett, Ben Fuller and Ben McCorkill, the people familiar with the matter said.
A representative for Winterflood declined to comment. All of the traders either declined to comment or did not respond to request for comment.
The departures come as shares of Winterflood’s parent have plunged 70% in the last year. In October, Close Brothers lost a closely watched court battle over its disclosure practices for customers taking out car loans and the lender warned that the ruling could result in “significant liabilities” for its business.
The Financial Conduct Authority is also conducting a far-reaching investigation into the commission arrangements that lenders offered auto dealers for car loans.
Close Brothers didn’t pay any dividends for the 2024 financial year as it sought to strengthen its balance sheet while the court case and the FCA’s review was ongoing. The company also agreed to sell its wealth unit to Oaktree Capital Management in September, retaining all the upfront cash proceeds from the deal as it navigated “the current uncertain environment.”
The company on Monday announced that Chief Executive Officer Adrian Sainsbury will step down in order to focus on his health, replacing him with finance director Mike Morgan. Sainsbury, who has previously been on medical leave, is expected to make a full recovery, Close Brothers said in a statement.
Winterflood itself has been beset by a slump in revenue in recent years as volumes from retail trading dropped. The broker posted an operating loss of £1.7 million ($2.1 million) in the year ended July 31, compared with a £3.5 million operating profit in the prior year, Close Brothers said in a September statement.
“Short-term trading conditions remain challenging,” Close Brothers said of Winterflood’s results at the time. “Uncertainty in the macroeconomic environment, combined with geopolitical concerns, have continued to weigh on domestic markets and impact investor appetite.”
--With assistance from Eleanor Harmsworth and Leonard Kehnscherper.
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