Cantor shrinks operating losses after Dolmen deal
OPERATING losses at the Irish arm of Cantor Fitzgerald narrowed last year.
The losses shrank by two-thirds to €408,043 in the year that the company bought Dublin-based Dolmen Stockbrokers and renamed the company.
Cantor Fitzgerald also changed its company status from unlimited to limited – a move that requires the firm's annual accounts to be filed with the Companies Office.
The figures show that Cantor Fitzgerald Ireland narrowed its operating losses from €1.24m to €408,043 – after it increased its gross profit by 21pc to €11.3m.
However, the firm's pre-tax losses almost doubled – going from €1.24m to €2.41m arising out of the firm writing off €2m through the amortisation of goodwill as an exceptional item.
The numbers employed at the firm increased from 68 to 78 during 2012 – with staff costs increasing from €5.18m to €5.91m.
The figures show that the firm paid a dividend of €5.73m last year.
The firm is headed by chief executive Ronan Reid, with the board containing seven other directors with aggregate directors' remuneration increasing from €246,857 to €299,365.
Shareholder funds at the end of last year totalled €5.64m.
According to the directors' report, "turnover increased during the year and the directors were satisfied with the level of turnover, given the difficult trading conditions experienced in global markets".
The report adds: "The directors continue to manage costs and develop new income generation opportunities.
"The directors are satisfied with the performance of the company during the year."
The directors state that new key areas are primarily dealing in government bonds; property investment and institutional equities.
The accounts confirm that the purchase of Dolmen Stockbrokers resulted in a cash injection of €3m in the new firm and a subordinated loan facility of €3m of which €1m was drawn down.