AG FINANCIAL CUTS BACK LOSSES
9 October 2014, Written by Nick Nichols
LISTED financial services company AG Financial (ASX: AHA) has pared back its annual deficit in 2014 after its first full year in its new Gold Coast headquarters.
The Broadbeach Waters-based company posted a $1.08 million loss for the 12 months to June 30, down from a $3.2 million loss in FY13.
The latest result was built on a 23 per cent lift in revenue to $3.137 million, although the bottom line was hurt by tighter margins due to higher product and commission expenses.
AG Financial is a relative newcomer to the Gold Coast corporate scene.
The company was formerly known as Excela and founded by wealth creation identity Peter Spann, who departed as executive chairman early last year.
Excela was founded in 1987 and was listed on the ASX by Spann in 2005.
The company relocated from Brisbane to the Gold Coast late last year and changed its name to AG Financial.
In August, the company, now headed by former E*Trade derivatives boss Delan Pagliaccio, secured control of boutique investment advisory firm Avestra Capital which it says was essential to ensure AG Financial remained a going concern.
The acquisition was accompanied by a $750,000 capital raising which was largely taken up by the vendors of Avestra which was formerly based in Sydney.
AG Financial says the acquisition, along with reduced overheads, have placed the company on a “stable financial footing with a strengthened balance sheet position”.
The move to the Gold Coast has seen AG Financial slash its annual rent bill from $1.27 million to $56,219 and employee costs from $1.14 million to $423,332.
AG Financial has not offered any forecasts for the current financial year.
Author: Nick Nichols