Bell FG profit down 24 per cent
Bell Financial Group has reported $6.3 million in net profits for the six months to 30 June 2011 – down 24 per cent on the previous corresponding period.
The company announced its results on the Australian Securities Exchange, mainly attributing the profit loss to lower market movements, particularly in the second quarter.
However, there were also “one-off, non-cash losses associated with the disposal of legacy listed and unlisted options (held within Southern Cross Equities) previously received as part Equity Capital Market (ECM) fee income”.
Bell Financial Group’s member firm, Bell Potter, had recently taken unrestricted control of Southern Cross Equities and formally combined the two share broking businesses into the one Bell Potter brand.
Total consideration paid for the Southern Cross business would be around $70 million, consisting of approximately $40 million cash and 32 million Bell Financial Group’s shares, the company stated.
Despite the profit loss, ECM revenue improved from $10.5 million to $10.7 million, reflecting an increase in the number of completed mandates across all sectors.
The performance of the core operating business was also ahead of the previous corresponding businesses, according to the company announcement, which noted that “each of our wholly owned business units continued to trade profitably throughout what were difficult market conditions”.
AUTHOR
Milana Pokrajac
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