Broker Dolmen set to reduce costs after loss rises to €2.4m
Published 03/12/2010 | 05:00
Losses at Dolmen Securities have risen to €2.4m as the company wrote down the value of its investments and implemented a cost-cutting programme.
Chairman Ronan Reid said the financial markets had collapsed in 2008 and 2009 and all brokers had been hit hard. He said the firm's core focus was now on stockbroking and wealth management.
The profit-and-loss account of the company shows income dropping for 2009 from €14.8m to €12.9m as Ireland experienced its deepest recession for decades. A net loss was posted of €2.4m, compared to the €824,428 in the previous year. The earnings before interest, taxation, depreciation and amortisation (EBITDA) came to €1.5m.
Mr Reid said the group had a strong balance sheet with cash and other liquid assets coming to €7.6m.
Dolmen has been subject to reports over recent years that it could merge with other brokers, but these have proven groundless.
This week it was reported that US financial company Cantor Fitzgerald might buy an Irish broker, but NCB and Davy Stockbrokers are more likely to be the targets, suggest sources.
Dolmen had shareholder's funds of €22.7.2m on its balance sheet and was employing 117 people, with a wage bill of €8.1m.
The company made a decision, because rates were so low, to put its €4.6m of cash into AAA rated countries
The firm, which counts property developer Garrett Kelleher among its backers, said earnings in the first six months of this year were positive and it was seeking out new growth opportunities.