August 6, 2009 / 11:15 AM / 8 years ago

UPDATE 2-Canaccord Capital Q1 profit down 45 percent

* Canaccord Capital Q1 2010 of C$0.16/share

* Canaccord Q1 revenue rose 28.5 pct to C$137.5 mln

* Canaccord says approved continued suspension of dividend

* Remains cautiously optimistic about immediate future (Adds details, company quote)

TORONTO, Aug 6 (Reuters) - Canaccord Capital Inc CCI.TO said on Thursday fiscal 2010 first-quarter profit fell 45 percent, hurt mainly by a steep fall in interest revenue, and said it would continue a dividend suspension policy.

The Vancouver-based investment dealer said it earned C$9.1 million ($8.5 million), or 16 Canadian cents a share, for the quarter ended June 30, versus C$16.5 million, or 31 Canadian cents a share, in the same quarter a year earlier.

Analysts on average had expected earnings of 7 Canadian cents per share, excluding special items, according to Reuters Estimates.

Revenue fell more than 20 percent to C$137.5 million.

The company, which said it is “cautiously optimistic” about the immediate future, saw interest revenue fall 72 percent in the quarter to C$3.5 million.

Canaccord said in a statement that on Aug. 5 its board of directors approved the continued suspension of its quarterly dividend due to the market environment and Canaccord’s business activity.

“This measure was taken to enable Canaccord to preserve its working capital and book value, as well as to position the company to take advantage of growth opportunities that may become available,” the company said.

Canaccord said that in the the fiscal first quarter its assets under administration were C$10.3 billion, down 29.6 percent from C$14.7 billion at the end of the fiscal first quarter of 2009. ($1=C1.07) (Reporting by Pav Jordan in Toronto, with additional reporting by Anurag Kotoky in Bangalore)

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