canaccord financial posts 20m loss

Canaccord Financial has recorded a net loss of $20.6m in its first quarter since acquiring Collins Stewart, as revenue fell 9% during the period.

canaccord financial posts 20m loss


In the three months to the end of June the group reported revenue of $162.5m, compared to $177.7m in the preceding quarter, a drop of $15.2m.

But its reported loss actually shrunk from $31.8m in the final quarter of fiscal year 2012 to $20.6m in the first quarter of FY2013.

The wealth management arm of the business generated $57.2m of revenue globally, but recorded a pre-tax loss of $6.5m during the period.

Meanwhile the UK and European wealth management division, which was formerly Collins Stewart generated $19.6m in revenue and recorded pre-tax income of $0.8m. Assets under management, in both discretionary and non-discretionary portfolios, reached £7.9bn at the end of the quarter.

Canaccord said it continued to believe the cost base of the combined group could be significantly reduced as a result of combining and rationalising the operations and business units of Canaccord and Collins Stewart.

“We are making significant progress in capturing the cost synergies we believe are possible through our acquisition of Collins Stewart, and we are actively engaged in additional cost reduction initiatives aimed at enhancing the efficiency of our operations during this period of market instability.

“On a combined basis, we’re on track to remove over $47m of annualised costs from our expanded global platform,” Paul Reynolds, president and CEO of Canaccord Financial, said.


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