Pressure from banking groups seeking outstanding debt is one of the reasons behind financial services firm Robe Australia's (Robe) full-year loss of $41 million, the firm's acting chairman has said.
Robe, formerly the Tolhurst Group, was placed under additional stress from its banking relationships with ANZ, forcing the firm to reduce its bank debt rather than seek new business opportunities, Robe acting chairman Peter Reilly said.
The global financial crisis was also a major factor that affected the listed firm's revenue, Reilly said.
"For the year ended 30 June 2009, the board has written off all intangible assets totalling $34,303,963 and reported a full-year loss of $41,137,895 compared to a profit of $1,346,056 for the previous year," he said.
Revenues declined from $75.9 million in 2008 to $38.6 million, impacted by the global financial crisis and the subsequent sale of various operating businesses.
In a bid to reduce its debts, in April Robe sold its wealth management business, Comcorp, to MMC Contrarian.
In August, Robe sold its interest in its in-house stockbroking division to Patersons Securities.
"Whilst the board acknowledges that the transaction in respect of the sale of the stockbroking business by Robe has resulted in a less than satisfactory economic return, the board considers that in the circumstances the sale has maximised the possible outcome to shareholders," Reilly said.
While undertaking the sale of the various Robe businesses a number of directors stood down, including non-executive director Greg Bundy, executive director Allyn Chant and independent non-executive director David Taylor.
Other than a small number of outstanding guarantees relating to existing property leases, the ANZ bank has been repaid in full, Reilly said.
