DKN Financial Group has recorded a $14.6 million loss for the half year ended 31 December 2008, a result that is 1031.8 per cent down compared to the same period in 2007.
The loss was mainly due to a writedown of a number of assets on the group’s balance sheet.
Specific operational areas that suffered writedowns were Platform Solutions, Lonsdale Wrap Rebate Solutions and Equities and Loans.
“As a result of recent market conditions, directors have prudently reviewed the balance sheet and recognized the impairment of assets to date to the value of $17.7 million,” the directors’ report accompanying the result said.
But the 2008 half-year results were not all bad news for DKN, with revenue from continuing operations at $12.4 million, an increase of 35.9 per cent compared to the same time last year.
Excluding market condition writedowns the group declared a profit after tax of $3.08 million, down from the same period in 2007 by 13.67 per cent. The six months ended 31 December 2007 produced a profit before tax of $3.58 million.
Despite the result the directors were optimistic about the group’s operations.
“Despite the unstable market conditions, new financial planning and accounting firms have been drawn to DKN by its strong value proposition and the supportive culture of the group, which acts in a cooperative approach to deliver tangible business benefits to these practices,” the directors’ report said.
