Financial services technology group HP JDV Ltd has lost more than $17.182 million for the year ending June 30.
The result is not the first major loss the group has experienced. Earlier this year HP JDV lost more than $13 million in the nine months to March 31, 2001. The group also recorded a loss of $9.2 million for the six months to December 31 on the back of revenue of $36.5 million.
The losses couldn’t have come at a worse time for HP JDV, with the group still in a start-up phase of its latest deal, the proposed outsourcing of Westpac Broking.
In June, Westpac Banking Corp Ltd announced its intent to outsource the technology and transaction processing operations of Westpac Broking to JDV. The deal is expected to be contractually formalised by September. In July the banking group injected $30.9 million into HP JDV in return for a 25.1 per cent stake.
The investment formed part of HP JDV’s plan to raise $40 million, with the remaining $9.1 million to be raised through an excluded $1.20 a share offer to eligible institutions, staff and investors.
HP JDV has already signed two major technology deals with St George and Macquarie in the past six months.
HP JDV, formerly known as Hartley Poynton Ltd, operates wealth management, stockbroking and investment banking businesses from 14 offices around Australia.
The group says that while the retail market had been soft, these areas continued to grow with the size of the investment advisory service set to benefit from an upturn in markets and acquisition opportunities through consolidation in the market for independent financial advice.
