Internal changes and costs associated with the company's HUB24 investment platform have contributed to Investorfirst's $30.5 million consolidated net loss after income tax for the full year to 30 June, the company said.
"Since the end of the 2012 financial year, the company has undertaken a comprehensive review of its cost structures and has moved aggressively to right-size the business," the company said in its preliminary final report to 30 June.
"Currently, annualised cost savings of $2.2 million have been identified and [the costs] are in the process of being removed from the business. We expect to extract further savings over [full year 2013]."
The listed company's full year 2012 loss was affected by the closure and write-down of its ATG business, which cost the company a $2 million impairment charge.
It also posted a $14.7 million impairment charge for its investment platform HUB24 due to slower than expected "commercialisation" as a result of a change in the regulatory structure. Market volatility also contributed to the platform's transition of funds under advice, the company said.
To date, 33 dealer groups with around $30 billion in funds under administration (FUA) have signed up to HUB24. Platform revenue in the past six month period has increased by 69 per cent, the company said.
Since the June launch of Investorfirst's super and investment products FUA has grown by more than 60 per cent.
Investorfirst also incurred costs in establishing its Melbourne-based full service stockbroking business, with weaker than expected stockbroking and corporate advisory volumes, caused by poor market conditions, and slower than expected client "on-boarding" resulting in a $2.5 million impairment charge.
As well as operational changes, two senior executives, chairman Otto Buttula and non-executive director Robert Bishop resigned from the Investorfirst board towards the end of the financial year.
As a result, the Investorfirst board is seeking a new chairman and is reviewing its "composition and the requisite skills necessary for the company".
"The search for a new chairman of the board has commenced and together with other changes, the board will be well-positioned to guide the company's strategy," the company said.
In regards to financial outlook, Investorfirst is now in a position to action its growth strategies, it said.
"The board remains cautious in our outlook given volatile investment markets, highly variable trading volumes and ongoing infrastructure investment as we prepare for the planned growth of the business."
