Listed funds management group Rockstead Financial Services has been forced to clarify its financial position following a drop in the company’s cash situation.
The Australian Securities Exchange has questioned the group after its quarterly report for December 2007 stated the company was $1.8 million in the red.
Rockstead claimed the change in its operating cash outflows was due to significant restructuring costs. First Capital Group was rebranded Rockstead in December last year.
“The operating cash outflows for the December 2007 quarter included significant restructuring costs which will not be insured going forward and therefore the cash outflows have reduced significantly,” the company said.
“In addition, the company and its subsidiaries are in the process of launching new product offerings and repositioning current product offerings to reflect the changing credit markets.”
The board and management believe the restructuring of the business and the launch of new products will generate improved cash flows from operations in the financial year ending June 30, 2008, and beyond.
Rockstead is also planning to grow its funds management and advisory business with the assistance of its majority shareholder, RS Asset Management.
The company’s working capital position at January 31, 2008, is $2.06 million.
Rockstead is a boutique investment and advisory firm with offices in Asia, Europe and North America.
