26th Aug 2016 08:01
LONDON (Alliance News) - Stockbroker and investment bank Fiske PLC reported a widened loss for its full year results as revenue and cash balance dropped.
The London-based independent bank booked a GBP1.3 million loss for the year ended May 31, 2016, compared to GBP645,000 for the same period the previous year. Total revenue dropped to GBP2.3 million from GBP2.6 million year on year.
The company board resolved not to pay a dividend for the financial year.
Fiske said the widened loss was due to a change to its operational systems and software which was "expensive and a major distraction for management", and led to a GBP680,000 direct expenditure investment write-off.
The company also reported a drop in its cash balance to GBP405,000 at the end of this latest year, compared to GBP2.5 million at the end of the prior year. However, Fiske said this position was its "nadir" owing to the temporary use of funds in client settlement positions which had since "recovered considerably".
Company revenues were hit by an 18% decline in receivable commissions to GBP1.95 million, from lower trading volumes. Investment management fees also slipped 3% to GBP680,000.
Fiske said its focus for future growth will be on private client investment management, to be achieved "both organically and by very selective and probably small acquisitions".
Chairman Clive Fiske Harrison said that while he did not believe Brexit would help the UK economy in the short term, the "threat to growth is much more real from events in China, commodity prices and problems in the Eurozone".
"Our new financial year has begun on a positive note with June and July showing an improving trend on the final months of last year. With the significant cost savings now beginning to show through and the operational advantages of having our ISAs in house we anticipate a more positive year in prospect," he added.
By Adam Clark; [email protected]
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Fiske