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.
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