12th Feb 2016 08:49
LONDON (Alliance News) - Canaccord Genuity Group Inc on Friday said it has decided to suspend its quarterly dividend, revealed plans to cut 125 jobs in Canada, the UK and the US, and reported a widening of its net loss in its third quarter.
The financial services group's net loss widened to CAD346.4 million in the three months ended December 31, from CAD21.5 million in the corresponding period the prior year. Excluding significant items, Canaccord's net loss widened to CAD19.1 million from CAD14.3 million.
The Vancouver-based company was hit by a CAD321.0 million impairment charge in its capital markets division, mostly related to an investment in Canadian First Financial Group Inc. The division will see job cuts to slash costs and lower overall headcount by 7.0%.
"A number of cyclical factors in the broader economy continued to put pressure on revenue and negatively impacted our third quarter performance," Dan Daviau, president and chief executive, said.
"We are making significant progress to reposition our business, with a strategy that is centered around improving our operational efficiencies and better aligning our core strengths, so that we can return to profitability and steadily improve our bottom-line return," he added.
Shares in Canaccord were down 16% at 185.75 pence in London on Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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