Business / Companies
Imara posts disappointing results, streamlining the business
03 Aug 2011 at 21:08hrs | Views
Imara, the Botswana-listed Pan-African financial services group, has announced a P8.2 million attributable loss for the year to the end of April on the back of losses by its corporate advisory business, lower stockbroking fee income, reduced contributions by associates and a 9% rise in expenses.
Mark Tunmer, CEO of Imara Holdings, said the results were disappointing after earlier projections of positive earnings growth. Remedial action to take costs out of the business was already under way and should be complete by the second half of Imara's year.
He explained: "We have already begun streamlining the business. Work is largely completed to restructure the business, which will lead to greater efficiencies and savings in operating expenses.
"Non-performing businesses will be critically reviewed for strategic fit and sustainable profitability. Slimmer structures create a platform for sustained growth and renewed profitability."
The results reflected a 3% revenue increase from P92.8 million to P95.5 million, with assets under management up 10%, from P2.8 billion to P3.0 billion.
The year under review saw lower contributions from associate firms in Zambia, Zimbabwe, Malawi and Mauritius, down from a net P1.9 million to P1.3 million.
Tunmer said the results captured some year-end 'snapshot effects' that were not as negative as they at first appeared.
Mark Tunmer, CEO of Imara Holdings, said the results were disappointing after earlier projections of positive earnings growth. Remedial action to take costs out of the business was already under way and should be complete by the second half of Imara's year.
He explained: "We have already begun streamlining the business. Work is largely completed to restructure the business, which will lead to greater efficiencies and savings in operating expenses.
"Non-performing businesses will be critically reviewed for strategic fit and sustainable profitability. Slimmer structures create a platform for sustained growth and renewed profitability."
The results reflected a 3% revenue increase from P92.8 million to P95.5 million, with assets under management up 10%, from P2.8 billion to P3.0 billion.
The year under review saw lower contributions from associate firms in Zambia, Zimbabwe, Malawi and Mauritius, down from a net P1.9 million to P1.3 million.
Tunmer said the results captured some year-end 'snapshot effects' that were not as negative as they at first appeared.
Source - .
