Sanford records second half loss

Financial services provider and online broker Sanford Ltd has reported a $17.9 million loss for the six months to December 31, 2000.

The Perth-based company, which listed on the Australian Stock Exchange last August, says the $7.2 million loss relates to operational activities.

The group also attributes $10.7 million to an abnormal item, the non-cash write down of goodwill.

Sanford chief executive Steven Goh says the group has sufficient cash reserves and is confident it has executed the measures needed to control and in turn reduce its cash outflow.

Goh says the funds relating to operating activities, which total $8.6 million, more than $2.0 million relates to a general reduction in net creditors during the second half of last year.

He says that of $8.6 million outflow of funds relating to operating activities, $2.0 million pertains to a general reduction in net creditors during the period.

"To some extent our reported revenue for the period is distorted as it does not include $700,000 pertaining to the period prior to the pre-acquisition of Sanford Securities by Sanford Ltd in July 2000," Goh says.

"We have increased the quality and level of revenue from our different business units with more than 50 per cent of revenue generated from our non-online broking services," he says.