Snowball Group losses roll on

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.