Euroz reports sharp profit slump

Weak equity values and a slowdown in deal flow have resulted in Perth-based stockbroker and funds manager Euroz reporting a sharply lower profit for the half-year to December 2011.

The listed company’s net profit after tax was $2.7 million, down from the very strong $18.4 million profit in the previous corresponding half-year.

The biggest dent to its earnings came from its equity accounted investments in Westoz Investment Company and Ozgrowth.

They contributed a combined $3.1 million loss for the half-year compared with a combined $9.3 million profit in the prior period.

However, the firm’s core broking and corporate finance activities also slumped, with pre-tax operating profit from normal activities falling to $8.9 million from $12.3 million.

Executive chairman Peter Diamond said the firm will continue to focus on its strategy of being a specialised financial services provider in the West Australian capital markets.

Euroz declared an interim dividend of 1.5 cents per share, from 3.0 cents previously.