The departure of key staff and restructuring of the firm’s internal business operations is behind financial services firm InvestorFirst’s full-year loss of $2.01 million.
Despite recording a loss, the drop represents a 44 per cent improvement on InvestorFirst’s previous loss of $3.65 million in the prior year when it was known as stockbroking firm Findlay Securities.
One of the key reasons for the $2.01 million loss was the termination of business activities and the winding down of corporate activities for Findlay & Co Stockbrokers in January this year, the firm’s annual report said.
The departure of high yielding staff from the Aequs Capital business also contributed to the firm’s loss.
Another contributor to InvestorFirst’s loss was the decision by the firm’s new directors and management to de-risk the business previously conducted by Findlay & Co Stockbrokers.
This included encouraging a team of consultant traders to use the firm’s capital to day trade shares without appropriate risk controls, the report said.
“In regards to the group’s current business activities, we remain cautious in our outlook given our intention to continue reinvesting in business systems and supporting collateral,” an InvestorFirst statement said.
“Nonetheless our primary revenue stream, that of gross brokerage, began on a far stronger note, up in excess of 30 per cent in the first two months compared to last year’s monthly run rate.”
InvestorFirst intends to expand its business for the 2010 financial year through strategic growth.
“This is envisaged to be achieved through cementing several and current strategic initiatives, including successful closing targeted acquisitions, recruiting higher yielding personnel, and establishing wholesale broking service relationships leveraging from our scalable platform,” the statement said.
Findlay Securities acquired Aequs Capital earlier this year.
In May this year, Findlay Securities was renamed InvestorFirst.
