The global economic downturn coupled with two major acquisitions has pushed the bottom line of Patersons Securities into the red, with the Perth stockbroking firm recording a net loss of $389,238 for the 2009 financial year.
In its financial report, the net loss was also attributed to the development of new business streams including Patersons Asset Management and Patersons Capital Partners.
The net loss after tax attributable to shareholders was $172,609.
The result compares with a $3.61 million net profit recorded for the previous financial year.
Patersons chairman Michael Manford said the loss was a satisfactory result given the turbulence during the year and the impact the global downturn had on trading volumes.
Revenue from the brokerage fell 20.7 per cent on the previous year to $44.4 million, while revenue from other activities, including placements and underwritings, was down 13.2 per cent to $36 million.
Total group revenue decreased by 17.6 per cent to $80.4 million.
"Whilst there remains some uncertainty about global financial markets, we are very confidence that Patersons business will see a significantly improved result for the 2010 financial year; the first three months of this current financial year support this view," executive chairman Michael Manford said.
During the 2009 financial year, Patersons acquired local firm Montagu Stockbrokers, paying a total of $1.29 million in cash and scrip.
The firm also acquired the stockbroking business of Tolhurst Group, paying a total of $2.9 million in both cash and shares.
When the acquisition was announced earlier this year, Tolhurst had claimed the acquisition value would be as much as $7 million.
During the year, Patersons welcomed Nudhar Corporation, a subsidiary of sovereign wealth fund Brunei Investment Agency, onto its share register following a $12.1 million placement of shares and options.
"Together with this raising and Patersons retained earnings, we move into the 2010 financial year with a very strong balance sheet, with net assets of $38 million compared to $24.1 million the year before," Mr Manford said.
At the end of the reporting period, the firm had cash and cash equivalents of $40.8 million, up from $27.3 million from the previous year.
