BUSINESS

Canaccord reports Q4 profit, revenue up 23 per cent from year ago

05/21/2013 04:37 EDT | Updated 07/21/2013 05:12 EDT
TORONTO - Canaccord Financial Inc. (TSX:CF) said Tuesday that it earned $6.4 million in its latest quarter as revenue increased 23 per cent compared with a year ago.

The investment firm said the profit amounted to four cents per diluted share for the quarter ended March 31 compared with loss of $31.8 million or 42 cents per diluted share a year ago.

Revenue in what was Canaccord's fourth quarter was $218 million, up from $177.7 million.

Excluding restructuring and other one-time costs, Canaccord said it earned $15.6 million or 12 cents per diluted share in the quarter, up from $2.1 million or two cents per share a year ago.

Canaccord president and chief executive Paul Reynolds said it was a pivotal year for the firm with its acquisition and integration of Britain's Collins Stewart Hawkpoint.

"In doing so, we eliminated significant costs, aligned staffing levels with market opportunities and grew our cross-border client services," Reynolds said in a statement.

"Together, these activities have strengthened our business and meaningfully enhanced our operating margins since the beginning of the year."

The acquisition of the London-based financial advisory group significantly increased Canaccord's reach in the U.K. and the U.S., and gave it a presence in Singapore.

For the full financial year ended March 31, the company lost $18.8 million or 31 cents per share on $797.1 million in revenue. That compared with a loss of $21.3 million or 33 cents per share on $604.9 million in revenue in the previous year.

Excluding restructuring and other one-time items, the company earned $25.6 million or 14 cents per share for the year, compared with $25.2 million or 25 cents per share a year earlier when it had fewer shares outstanding.

Canaccord has wealth management and investment banking operations around the world, with offices in 13 countries.