Deakin forecasts $1.9 million loss
Financialplanning providerDeakin Financial Serviceshas forecast a $1.9 million loss in its preliminary final report for the year ending June 30, 2003.
The group says professional costs incurred in the continuing negotiations withAustChoiceover a possible acquisition of the business contributed significantly to the loss.
Deakin also says adverse investment market conditions and a reduction in retail net inflows into the funds management industry contributed to the loss as growth stalled in the second half of the financial year.
On recognising there would be a profit shortfall, Deakin undertook a cost reduction strategy to align costs with revenues, resulting in operating performance back to break-even in July and August.
Despite the poor profit forecast, Deakin says the business still remains in a sound financial position, with cash resources at over $6 million. The group says the possible merger with AustChoice would further enhance this outlook.
Recommended for you
In the latest episode of Relative Return Insider, host Maja Garaca Djurdjevic and AMP’s Shane Oliver break down US and Australian rate cuts, soaring gold, and bitcoin’s volatility.
In the latest episode of the Relative Return Insider, host Maja Garaca Djurdjevic and AMP’s chief economist Shane Oliver unpack the surprising twists in the Australian economy, diving into the latest GDP numbers, what’s really driving consumer spending, and what it all means for the Reserve Bank’s next moves.
In this episode of Relative Return, host Laura Dew chats with Roy Keenan, co-head of fixed income at Yarra Capital Management, to discuss the evolving fixed income asset class, his sector preferences, and the RBA’s rate-cutting policy.
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to dissect the ongoing government economic reform roundtable and reflect on the wish lists of industry stakeholders – and whether there is hope for meaningful reform.
