Stockbroker and funds manager Euroz has reported a sharp slump in earnings from last year’s very high levels, but it has still posted a profit, in contrast to the interim loss reported by competitor Bell Financial Group.
Euroz has reported an unaudited 56 per cent drop in net profit to $11.8 million, citing difficult market conditions for the result for the year ending June 30.
In the previous year, Euroz earned a bumper net profit of nearly $26.6 million.
Its full-year fully franked dividends totalled 8 cents per share, down from 18 cents.
Euroz executive chairman Peter Diamond said the result was pleasing under the trying circumstances.
“Market sentiment, trading volumes, ECM activity and the value of our investments are the interlinked drivers of our businesses,” Mr Diamond said.
“At present, we would classify these market conditions as amongst the worst we have experienced.”
He said Euroz would have a strong balance sheet of $118 million of cash and investments after it paid its dividend.
Euroz’s performance supports the view of most investment bankers that spoke to WA Business News for our quarterly corporate finance review due out in this week’s print edition.
National stockbroker Bell Financial Group fared much worse than Euroz, saying today it was likely to record an after-tax loss of $1.8 to $2.0 million for the half-year to June 30.