19th Feb 2016 13:57
LONDON (Alliance News) - Fiske PLC Friday said its first half results were "disappointing" as it reported a wider pretax loss as trading suffered from weakening markets.
The stockbroking and investment management company reported a pretax loss of GBP662,000 in the six months ended November 30, widening from the GBP162,000 loss in the same period a year earlier.
That was the result of revenue dropping to GBP1.2 million from GBP1.3 million and because operating expenses were materially higher, pushing Fiske to a considerably wider operating loss than a year ago.
"Our trading has suffered as a result of weakening markets which have depressed day to day commission revenues. Conversely fee revenue from our assets under advice and management has risen when compared to the prior year," said Fiske.
Operating expenses increased to GBP1.9 million from GBP1.5 million, delivering an operating loss of GBP708,000 from a GBP176,000 loss a year ago.
"The principal cause of the reported loss for the period is the ongoing investment in our major systems change. The majority of these costs have been expensed rather than capitalised as we consider this policy to be more prudent and appropriate. In addition we have incurred exceptional restructuring costs as we have sought to adjust our cost base to the current market environment," said Fiske.
Fiske warned it has further costs related to its ongoing investment and restructuring in the second half of the current financial year, but said these are on a "reduced scale" compared to the first half.
Fiske said it expects its investment in its systems to be complete before the end of the financial year in May, providing the opportunity to improve the range of services it offers through the new platform.
"In the last annual report and accounts I noted that we would not be paying a second interim dividend and, given that market conditions have not improved, the board has resolved for the time being to continue the policy of not paying a dividend," said Fiske Chairman Clive Harrison.
"Although currency movements have continued to reduce the carrying value of our holding in Euroclear, which is denominated in euros, the company continues to trade strongly. We remain confident that our investment in the company will be successful," he added.
Fiske shares were up 7.5% to 50.0 pence per share on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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