GMP Capital Trust today reported that its predecessor, GMP Capital Corp., saw its third-quarter profit jump 82% to $15.8 million.
GMP Capital completed its conversion into an income trust last week.
Earnings for the quarter ended October 31 were 54¢ a diluted share and compared with $8.7 million, or 31¢ per share for the year ago period.
Revenue rose 70% to $64.9 million.
“We are pleased to deliver another strong quarter to our shareholders, having achieved record results for the first nine months of fiscal 2006,” said CEO Kevin Sullivan, in a release.
“Despite somewhat mixed markets, our team has been able to deliver exceptional year-over-year revenue and profitability gains. We are confident that our recent conversion to an income trust will help us to meet our goal of consistently increasing unitholder value.”
GMP’s nine-month earnings hit a record $54.3 million or $1.93 a share, up 66% from $32.7 million or $1.17 per share a year earlier. Year-to-date revenue rose 58% to $202.4 million.
The new GMP Capital Trust has three main operating subsidiaries: investment dealer GMP Securities LP, Griffiths McBurney Corp. and GMP Private Client LP.
GMP Securities has offices in Toronto, Calgary, Montreal and Geneva, Switzerland. Griffiths McBurney Corp. serves institutional clients in the United States while GMP Private Client LP is focused on high-net-worth private investors.
GMP Securities’ revenue totalled $61.7 million in the quarter, up 62% from the same period last year, due to another strong quarter in investment banking and institutional equities compared with the same period last year.
Sales and trading revenue in the quarter increased 47% to $22.9 million from $15.6 million in the same period last year.
GMP Private Client recorded revenue of $3.4 million in the third quarter. GMP said it has reached this year’s target of 15 advisory teams in its offices in Calgary, Toronto and Vancouver, which launched in November 2005, representing 18 investment advisors.