UPDATE 1-Greenhill Q1 profit disappoints; co-CEO to step down

Wed Apr 21, 2010 5:03pm EDT

* Q1 EPS $0.02 vs est. $0.45

* Q1 financial advisory fees down 44 pct

* Says co-CEO to step down

April 21 (Reuters) - Boutique investment bank Greenhill & Co (GHL.N) reported quarterly profit way below analysts' view, hurt by lower financial advisory fees, and said its co-chief executive will step down, effective immediately.

Simon Borrows, who had been the co-CEO since 2007, will become chairman of the company, leaving Scott Bok as the sole CEO of the firm.

The company reported first-quarter net income available to common shareholders of $511,896, or 2 cents a share, compared with $13.9 million, or 45 cents a share, in the year-ago period.

Analysts on average had expected the company to earn 45 cents a share, according to Thomson Reuters I/B/E/S.

"A delay in completion of a major transaction -- which is still pending -- resulted in a quarter with relatively low revenue and a correspondingly high compensation ratio," the company said in a statement.

Total revenue for the quarter was down 21 percent at $48.9 million. Financial advisory fees -- the largest contributor to total revenue -- fell to $36.6 million from $65.1 million.

Analysts were looking at total revenue of $63.8 million.

Shares of the company closed at $86.71 Wednesday on the New York Stock Exchange. (Reporting by Sweta Singh in Bangalore; Editing by Unnikrishnan Nair)