Cavendish, the newly launched City investment bank, posted a loss of £3.9m for the past 12 months despite an increase in revenue as merger costs weighed on the firm.

The UK-focused investment bank made £48m in revenue for the year to 31 March, up by 46% compared with the prior period, according to newly released accounts. But it slipped to a near £4m loss amid tough conditions for London’s equity markets.