A COMPANY connected to Tony Ryan, the founder of Ryanair, has paid £800,000 (€1.24m) for a 9.9% stake in a small, loss-making British investment bank, writes Des Crowley.

Durlacher, a traditional stockbroker transformed into an investment boutique for internet companies, was one of the most hyped shares during the 2000 equity boom, soaring to a market value of £2.3 billion (€3.56 billion) as shareholders raced to buy into its technology expertise. Since then, it has fallen from grace, recording losses of £45m in 2001 and £10m in the year ending last June. The Ryan investment is part of a placing at £1 per share planned to raise up to £6.25m. It will more than double the size of Durlacher.

Christopher Stainforth, the company’s chief executive who was appointed eight months ago to re-engineer the bank, confirmed the Ryan investment to The Sunday Times last week.

Stainforth was once a senior figure at brokers Phillips & Drew and was also corporate finance chief at Guinness & Mahon bank. Although Ryan’s investment is small, the Durlacher name and Stainforth’s record appear to guarantee that significant expansion is afoot at the bank.

“I approached people for two reasons,” said Stainforth. “Obviously, because they had money but also because, as high net worth individuals, they would have an interest in investment services. The plan is to avoid the tech area and to initiate investment in other areas such as healthcare. And, of course, as shareholders, they would get first crack at any of our investments. This means that they are also potential sources of investments funds.”

About 40 people are involved in the attempt to refashion the company.

The fact that Ryan is now one of the largest investors in the bank, along with several wealthy businessmen, suggests that the investment is more than a casual interest.

The holding is being handled through a private unlimited Irish company called Bootlane Holdings whose directors are Tony Ryan’s sons, Declan, Shane and Cathal.