Financial Services Correspondent
SA's largest independent local brokerage, Barnard Jacobs Mellet (BJM), bore the brunt of the tough market conditions as its headline earnings took a 92% dive for the year to end-March.
CEO and founder Paul Barnard has stepped down to an executive position as part of a "planned changeover" that will see him switch focus to the company's UK business. Kevin Jacobs, who previously ran the US business, takes over officially from Barnard as CEO today.
Jacobs said that, "notwithstanding tough market conditions", the group was still disappointed. Headline earnings fell to 2,1c a share from 25,44c previously
"Having said that, there are many things we can control, but we obviously can't control market volume and market conditions," he said.
Expenses grew 25% in the first half, but were scaled back to 10% for the year. The fall in net profit to R1,6m from R26m was attributed largely to a 1,4% drop in revenue and growth in expenses.
While Jacobs said that the group needed to ride out the market storm and remain "flexible enough to fight another day", the group said it would look at implementing new cost-cutting measures should the markets not improve.
May 30 2003 07:25:15:000AM Rob Rose Business Day 1st Edition
Friday
30 May 2003
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