Broker undergoing “cost reduction and income management” exercise

Manchester-based CBG Group is cutting its costs after admitting its financial performance was “under pressure” following a difficult first few months this year.

In a statement following the company’s annual general meeting, chairman Laurie Turnbull said the full benefit of the cuts would be seen in the next six months.

In March, the broker posted a 17.5% increase in pre-tax profits to £2.25m and revenues up 49.9% to £11.4m for 2008.

Turnbull said: “At the time of announcement of our preliminary results in March, I reflected on how the way 2008 ended and how we would respond to changes as situations evolved.

“Trading conditions have remained challenging since then and, as we approach the lead-in to the end of the first half, it is clear that our financial performance is under pressure.”

He said the company would continue to focus on its cost base. “We believe the group remains robust and well placed to meet forthcoming challenges and capitalise on the economic upturn when it comes,” he said.