Collins Stewart boosts Canaccord

 
Marion Dakers
CANACCORD Financial’s revenues have been boosted by its purchase of financial advisory group Collins Stewart Hawkpoint, the Canadian firm said in its annual results.

Group revenues rose 32 per cent to $797.1m (£525.8m) in the year to the end of March, while Canaccord’s net loss narrowed to $18.8m from $21.3m a year ago.

Costs at the firm rose 36 per cent to $766.9m as the firm spent money restructuring after the purchase of Collins Stewart, which it agreed to take private for £253.5m in late 2011, and wealth manager Eden Financial.

“Fiscal 2013 was a pivotal year for Canaccord Financial, as we integrated the largest acquisition in the firm’s history,” said chief executive Paul Reynolds.

“In doing so, we eliminated significant costs, aligned staffing levels with market opportunities and grew our cross-border client services.”

Reynolds said the purchase of London-based Collins Stewart has “materially enhanced” the firm’s sector coverage, helping diversify away from the natural resources industry.

More than half the firm’s revenues are now generated outside its home country of Canada.

The group took part in 94 transactions under the Canaccord Genuity name during the first three months of 2013, including Esure’s London float and Sportingbet’s takeover by William Hill and GVC.

Canaccord Genuity’s advisory revenues more than doubled to $56.1m in the fourth quarter alone.

The wealth management arm reported assets under management of $26.8bn at the end of March, slightly lower than a year ago as growth in the UK office was offset by falling values in Canada.

The unit has cut the number of advisory teams from 280 to 178 since last year.

Canaccord’s Toronto-listed shares dipped two per cent in early trading yesterday.