Canaccord has loss on lower revenue, higher costs
TORONTO (Reuters) - Canaccord Financial Inc (CF.TO: Quote) reported a fiscal fourth-quarter net loss on Wednesday, hurt by lower revenues from its trading and investment banking businesses, and higher costs tied to restructuring and acquisition-related items.
The Toronto-based financial services provider reported a net loss of C$31.8 million, or 42 Canadian cents a share, for the quarter ended March 31. A year earlier, it posted profit of C$41.3 million, or 49 Canadian cents a share.
Excluding one-time items, the company reported earnings of C$2.1 million, or 2 Canadian cents a share, down from a year-ago profit of C$42.3 million, or 50 Canadian cents a share.
In December, Canaccord said it was acquiring British broker and advisory group Collins Stewart Hawkpoint for just over 253 million pounds ($397 million), cementing the Canadian investment dealer's ambitions of expanding in London.
"As the acquisition of Collins Stewart Hawkpoint closed at the end of our fiscal fourth quarter, our fiscal 2012 results do not reflect the capabilities of our new expanded business," said Canaccord's Chief Executive Paul Reynolds in a statement. "We believe the true value of this investment will be demonstrated in the year ahead."
Canaccord's quarterly revenue fell 28 percent to C$177.7 million, largely due to sharp revenue declines from its core trading and investment banking segments.
(Reporting By Euan Rocha; editing by Jeffrey Benkoe; Editing by Gerald E. McCormick)
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