Deakin Financial Services Grouphas made a massive turn around in its performance with the group recording a net profit after tax of $176,000 for the half-year ending December 31, 2001.
The increase in net profit is a huge improvement for the group, which recorded a disastrous result for the corresponding period the previous year, leaving the group with $8.8 million in losses.
Deakin chairman Robert Hunwick attributes the group’s improvement in performance to the elimination of non-core activities and the development of the core business of financial services distribution.
Hunwick says despite the group undergoing a complete restructure of the business there were no write-downs or unusual losses in the period, indicating that the group’s consolidation is now complete.
He says the injection of shares valued at $968,000 and capital of $398,000 into the group during the past 12 months has helped reinforce the capital position of the group.
The new capital was issued to the company following the 2001 annual general meeting where a settlement for a long-term liability of $600,000 was approved, paving the way for a $202,000 gain for the company and preserving valuable cash resources.
Also connected to the group’s positive profit was $495,000 cash raised following the placement of 3,300,000 additional shares during the course of 2001.
From an operational side of the business, the financial services distribution revenue has grown by 31 per cent to $4.9 million over the half year, although this area of the business still recorded a loss. The loss of $38,370 compares with a loss in the previous corresponding period of $226,648.
Hunwich says this loss reflects the July-August period when changes in the structure of Deakin had not been completed.
