Merchant Securities, which owns nominated adviser John East, says it made a loss last year.
It has been hit by a number of one-off costs relating to the restructuring of the group following the acquisition of John East, the upgrading of its systems and the transfer o settlement and clearing to Pershing.
The loss after tax is expected to be around £600,000 and £200,000 of this represents the loss before one-off costs.
Management blames the deterioration in market conditions since the interim figures were announced last December. They showed a pre-tax profit of £91,000. Private equity transactions have not been completed so they haven’t contributed the expected income.
The shares fell 4p to 20.5p, valuing the company at £6.39m. Merchant Securities was valued at £8.35m – payable in shares at 50p each, when it reversed into cash shell Castor Investments in October 2006.
A new institutional research and sales team is due to join Merchant Securities, which became a member of the London Stock Exchange in February, in the next couple of weeks.
The results for the year to March 2008 should be published in the second half of July.
© 2022 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.