Dolmen reports losses of €2.49m

Dolmen Stockbrokers made a pre-tax loss of just under €2.5m in 2010, accounts just lodged with the Companies Office show, but the firm expects its 2011 accounts to show a return to profitability.

While the Dublin-headquartered stockbroking firm actually managed to lower its operating losses, by 35%, to €1.66m from €2.54m, once-off costs relating to a restructuring of the business, along with various other charges resulted in the €2.49m pre-tax loss. This was up from a pre-tax loss of €2.4m in 2009.

Dolmen’s management has attributed the 2010 loss to the difficult trading conditions experienced in global markets. Total depreciation, amortisation and other charges amounted to €1.23m in 2010 and the company made an EBITDA loss of €1.26m, down from €1.54m a year earlier, due to costs relating to various asset writedowns and the exit from a number of unprofitable business initiatives.

Operating losses relating to discontinued operations amounted to just over €1.1m in 2010. However, in the associated notes to the accounts, Dolmen’s management said that it is “satisfied” with turnover and profitability levels arising from its existing business and new business initiatives. It expects its 2011 accounts to show that the company returned to profit last year.

“All of the group’s remaining activities remain strong and the directorsalso continue to focus on growth opportunities.

“The directors note that business levels to date in 2011 are higher than 2010 and anticipate a return to group profitability in 2011,” the accounts state.

The 2010 figures note Dolmen placed nearly €3.3m of its cash in triple-A rated German government treasury bills, “due to the uncertainty surrounding the domestic banking environment”. Cash and liquid resources totalled €5.9m as of the end of 2010.

The firm yesterday announced changes to its management team, with Martin Scully of Oyster Technologies succeeding former chairman Michael Jacob, and Ronan Reid, who was acting executive chairman, taking on the role of chief executive.

Jennifer Caldwell, formerly of Maples & Calder, has also joined the board.