A specialist Edinburgh corporate finance adviser has warned the stock market that it is set to make a loss this financial year, with business slackening of.
The warning was issued on Wednesday 13th June in a directors’ statement by Quayle Munro.
The statement from the boutique adviser said that strong results seen in recent years, were not going to be seen in the latest results.
Quayle Munro has previously advised leading companies about commercial finance in Scotland, but blamed lower volumes of transactions for the poor results.
It went on to add that the first half of 2012, which forms the second half of the company’s financial year, has also seen a drop off in revenue.
The statement said the combined effects would be felt:
“This is likely to result in a pre tax loss at group level for the full financial year.”
The market responded to the news by wiping 15% off the company’s share price. It continued to fall through the week.
However, there was more positive news for the future. The statement continued:
“The board continues to be encouraged by the pipeline of new and existing advisory business, with the possibility of major transaction completions in the early months of the new financial year.”
In the previous two financial years, the company has seen significant pre-tax profits.
In 2010-11 this was £3million. In 2009-2010, this was £3.1million.
Investors, directors and the market will be hoping a return to such profits will be achieved sooner rather than later.