Operating losses at brokerage firm fall

Operating losses at the Irish arm of international brokerage firm, Cantor Fitzgerald last year fell 67% to €408,043.

The US-owned firm, which was devastated in the 9/11 terrorism attack on New York where it lost 658 staff at the World Trade Center, last November purchased Dublin firm, Dolmen Stockbrokers.

Dolmen was renamed Cantor Fitzgerald Ireland Ltd and changed its company status from unlimited to limited requiring annual accounts to be filed with the Companies Office.

The figures show Cantor Fitzgerald Ireland narrowed its operating losses from €1.24m to €408,043 after increasing gross profit by 21% from €9.29m to €11.3m in the 12 months to the end of Dec 2012.

However, pre-tax losses almost doubled, going from €1.24m to €2.41m, arising from the firm writing off €2m through the amortisation of goodwill as an exceptional item.

On taking over Dolmen for an undisclosed fee last year, Cantor forecast that 200 jobs would be created through the new business over the first year.

The numbers employed at the firm increased from 68 to 78 during 2012, with staff costs increasing from €5.18m to €5.91m.

The firm paid a dividend of €5.73m last year.

Cantor Fitzgerald Ireland is headed by chief executive Ronan Reid, with the board containing seven other directors. Aggregate directors’ remuneration increased from €246,857 to €299,365.

Shareholder funds at the end of last year totalled €5.64m.

According to the directors’ report “turnover increased during the year and the directors are satisfied with the level of turnover given the difficult trading conditions experienced in global markets”.

The report states that as part of the Cantor group, the company will be expanding into other areas of activity, as well as building on its strength in existing businesses. Key areas are primary dealing in government bonds; property investment and institutional equities.

The accounts confirm that the purchase of Dolmen Stockbrokers resulted in a cash injection of €3m in the new firm and a subordinated loan facility of €3m of which €1m was drawn down.