News Column

Hume Capital Securities First-Half Pretax Loss Narrows

May 28, 2014

Samuel Agini

LONDON (Alliance News) - Hume Capital Securities PLC Wednesday reported a narrowed first-half pretax loss, boosted by higher revenues and cost cutting measures.

It reported a GBP692,000 pretax loss in the six months ended February 28, compared with a GBP1.9 million pretax loss a year earlier, as revenue increased 22% to GBP3.5 million, while administrative expenses fell to GBP4.2 million, from GBP4.7 million.

Hume Capital Securities said that its capital markets and wealth management businesses improved over the six months, adding that it is continuing its efforts to grow revenue and reduce costs further. This led to the company ceasing its market-making activities in the short-term in April.

Nitin Parekh, Hume's former chief executive, resigned on May 8, leaving Jonathan Freeman, a non-executive director, in the role on a temporary basis until a permanent replacement can be found.

Despite raising about GBP1.2 million in two recent equity issuances, Hume said it remains in advanced discussions with a group of investors who have indicated that they are willing to provide funding if necessary in the short or medium term.

In the notes to its financial statement, Hume said that if its forecasts, which assume an immediate increase in profitability based on its cost cutting measures, are not achieved, it would need to rebuild its capital base, which has been hurt by retained losses. Hume said it would expect to secure its capital position by placing more shares and further restructuring. Nevertheless, Hume said it has a "reasonable expectation" that it has adequate resources and enough liquidity for the foreseeable future.

"Even with the improved results in the period under review, the group has still made a loss and has had to restructure some of its operations in order to secure its liquidity and capital positions during the financial year," Freeman said in a statement.

"We continue to make progress towards the creation of a profitable financial services group that has a reasonable spread of diversified revenues and anticipate that the second half of the current financial year will show further improvement towards that goal," the interim CEO added.

Hume Capital shares were Wednesday quoted at 0.14 pence, untraded.

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Source: Alliance News

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