11/01/2019 - 15:36

Euroz reports net loss

11/01/2019 - 15:36

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Stockbroking and funds management company Euroz has foreshadowed a half-year net loss after investment losses offset a gain in underlying cash earnings.

Euroz reports net loss
Euroz is led by executive chairman Andrew McKenzie.

Stockbroking and funds management company Euroz has foreshadowed a half-year net loss after investment revaluations offset a gain in underlying cash earnings.

The Perth-based company expects a net loss after tax of $2.1 million for the six months to December 2018, compared to a net profit of $13.7 million in the previous corresponding period.

Its underlying cash profit for the latest half-year was $6.8 million and on the back of this, it has declared an interim dividend of 1.75 cents per share.

The cash profit was offset by $8.9 million of non-cash losses from the ‘mark to market’ valuation on its investments.

The losses were mostly attributable to the declining share prices of its ASX-listed subsidiaries, Westoz Investment Company and Ozgrowth.

They recorded gross investment losses of 12.1 per cent and 15.5 per cent respectively, and that was reflected in weaker share prices.

Euroz said its overall funds under management declined slightly to $1.425 billion, from $1.46 billion six months earlier.

The biggest contributor to this total is Entrust Private Wealth Management, which achieved modest growth in funds under management to $809 million.

New inflows were partially offset by decreases in portfolio values.

On a positive note, Euroz Securities drove the growth in cash profit.

It delivered capital raisings of $277 million for the half year, including for IMF Bentham, Fleetwood Corporation, West African Resources and Aeris Resources, and was ranked the top WA-based broker in the BNiQ deals database for calendar year 2018.

Brokerage income was down, reflecting weaker markets.

 

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