Consolidators feel the heat
Two of Australia’s financial services consolidators are buckling under investor pressure to explain company forecasts, following the loss of millions of dollars which have been flagged in half yearly results.
For the year to June 30, 2001Stockfordhas lost $5.73 million, a result well below its forecast profit of $7.5 million, after operating revenue reached $75.41 million.
In July earlier this year, Stockford financial planners who traded their businesses for shares in Stockford may have lost up to half the value of their business when the group’s share price collapsed.
Shares plunged 42 per cent to $0.84, knocking $132 million off its market capitalisation after it circulated its second profit downgrade in two months.
Fellow consolidator,Hartswill have even more explaining to do when its results are released next month, as it is rumoured the group will record a loss of more than $17 million.
In a company statement Harts managing director Steve Hart says the company “anticipates a loss from operations (prior to abnormals and write off of goodwill) for the full year of approximately $17 million)”.
Hart adds that directors will be reviewing the carrying value of the company’s investments and goodwill and will be taking a “conservative” approach in the full year financials.
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