Independent brokerage firm Canaccord Capital Inc. today said its third-quarter profit increased 48% as demand grew for its services in the Europe.

The firm, which went public last June, said it earned $16.7 million, or 36¢ a share, in the three months ended Dec. 31, 2004. That compared with a profit of $11.3 million, or 32¢ a share, in the same period a year ago.

Revenues grew 4.3 % to $123.7 million from $118.6 million in the year-earlier period, while expenses fell 1 % to $96.4 million.

Canaccord said it will pay a special distribution of 15¢ per common share in addition to its normal dividend of 5¢ a share.

“I am pleased to announce another successful quarter led by exceptional growth from our Global Capital Markets group, particularly in the European market,” said Peter Brown, chairman and CEO.

Brown added that Canaccord’s has appointed Paul Reynolds, currently president and COO of Canaccord Capital (Europe) Limited, to vice chairman, head of Global Capital Markets. In addition, Mark Maybank, currently executive vp & director of Research of Canaccord Capital Corp., has been appointed managing director, head of Research and Global Capital Markets Operations.

“The full integration of our capabilities in North American and European markets will strengthen our ability to offer our clients differentiated services on a sustainable basis,” Brown said.

Both appointments are effective April 1.

In addition, the Global Capital Markets compensation structure has been reorganized effective April 1, 2005.

“The incentive compensation payout for our GCM staff will change to a flat 50% of revenue, plus a further 5% payout of GCM gross revenue that includes allocated support staff expenses and a portion of net profits of the business unit, for a total compensation payout ratio of approximately 55%,” Brown added.