August 5, 2010 / 1:21 PM / 7 years ago

Canaccord profit slips as Genuity absorbed

* Q1 net income C$4.9 million, or EPS of C$0.06

* Results include C$12.4 million of acquisition expenses

TORONTO, Aug 5 (Reuters) - Canaccord Financial Inc (CF.TO), one of the country’s top independent brokerages, said on Thursday fiscal first quarter profit fell 35.2 percent as it absorbed the cost of acquiring Genuity Capital Markets in April.

Canaccord said net income for the first quarter of fiscal 2011 was C$4.9 million, with diluted earnings per share of 6 cents.

The results included C$12.4 million of acquisition-related expense items connected to the acquisition of Genuity, a boutique Canadian investment bank specializing in mergers and acquisitions and advisory services.

Excluding acquisition-related expense items, the Vancouver-based company reported earnings of C$13.9 million, up about 52.5 percent from C$9.1 million a year before.

Canaccord is best known for a strong presence in Canada’s mining sector, particularly among juniors and midcaps. The firm, with 37 offices worldwide, has also developed a strong presence in China.

Genuity gave the company a well-connected M&A shop, with bankers with ties to some of the country’s top companies. ($1=$1.01 Canadian) (Reporting by Pav Jordan, editing by Gerald E. McCormick)

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