Snowball Group losses roll on

cash flow ASX

26 February 2004
| By Craig Phillips |

By Craig Phillips

Listedfinancial planning firmSnowball Groupcontinues to lose money following its recent posting of a $1.2 million loss for the second half of the 2003 calendar year, despite a 19 per cent growth in funds under advice to $656 million over the period.

The posting follows previous net losses for the 2002 and 2003 financial years ending June 30, which were negative $6.16 million and negative $3.45 million respectively.

According to Snowball chief operating officer Carl Scarcella, the latest loss is mostly attributable to amortisation and depreciation within the group.

Snowball has to date offset its losses through a recent $1.62 million capital raising, increases in operating revenue and cash held within the business.

However, despite the losses, the group expects to have sufficient working capital to achieve its objectives.

According to a statement to theAustralian Stock Exchange(ASX), the firm aims to reach consistent cash flow positive trading by the end of this financial year.

Snowball is also looking to organic growth, acquisitions and mergers or alliances with third parties, it said in a statement.

The $1.2 million loss for the six-month period ending December was a 31 per cent improvement on the $1.8 million loss posted for the corresponding 2002 period.

At balance date the company held cash reserves of $1.05 million, up from the $113,000 held at June 30, 2003.

Read more about:


Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry




Well done Keith and Neil, these Canberra Bureaucrats need to be stopped. ...

1 day 14 hours ago

WHEN I RETIRED A LOT OF GUY'S WERE STILL PRACTICING FORMS OF COLD CALLING. There nothing wrong with it as a way of estab...

2 days 13 hours ago

I thought you joined a dealer to be protected and have a better version of regulation explained, BUT The dealers themsel...

2 days 14 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 2 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

3 weeks 3 days ago

ASIC has suspended the AFS licence of a Melbourne fund manager responsible for six managed investment schemes....

2 weeks 3 days ago