WA-based brokerage house Sanford Limited (parent company of online discount broker Sanford Securities) reported its half year results this week, recording a $17.9 million loss for the six months to December 2001.
Operational activities accounted for $7.2 million of this loss, with $10.7 million being an abnormal item - a non-cash goodwill write-down, a company statement said.
Revenue for this period rose to $6.7 million, an increase of over 75 per cent for the same reporting period in 1999, according to Sanford estimates.
Despite the loss, Sanford chief executive Stephen Goh said the firm had sufficient cash reserves and was confident it had successfully implemented the measures needed to reduce and control its cash outflow.
Goh claimed Sanford's reported revenue for this period was distorted, as it did not include $700,000 relating to the period prior to the pre-acquisition of online broking business Sanford Securities in July 2000.
He noted that Virtual Broker - an online mortgaging and financial services venture - had generated strong business growth for Sanford, as well as increased customer base and licensing of proprietary software.
More than 50 per cent of revenue growth on the other hand was driven by non-online broking services, Goh said.