Canaccord Financial Inc. says it has cut 76 jobs as part of a move to slash costs as it swung to a loss in its fiscal first-quarter.
The financial services company said Wednesday it lost $20.6-million, or 24 cents per diluted share, in its first-quarter of 2013. That compared to a profit of $13.2-million, or 16 cents per diluted share, in the year-earlier quarter.
Revenue rose 2 per cent to $162.5-million from $159.8-million as it expanded its platform.
However, expenses grew 30 per cent to $187-million from $144 -million in the year-ago period as a result of the company’s larger operating base.
The company says it has embarked on a cost-saving initiative to eliminate $5.5-million in annual costs.
Canaccord has restructured its Montreal office, resulting in the elimination of 16 jobs. It is also looking to consolidate its space at that building for an expected annual savings of $1.2-million.
After the quarter ended, the company also cut 60 full-time and contract jobs “to better align the company’s resources with current market conditions.” It expects these cuts will save it $4.3-million each year.
It expects to book restructuring costs of about $4.4-million in its fiscal second quarter.
It also expects to save $42-million in synergies following the acquisition of Collins Stewart Hawkpoint PLC. In a letter to shareholders, Canaccord said the economic environment is hitting the small to mid-market resource industry particularly hard — a space that has traditionally been a strength for the company.
“The results were apparent in several revenue lines during our fiscal first quarter,” the company said.
“While we anticipate the ongoing European debt crisis may take many more months to resolve, we remain highly confident our business is optimally positioned to continue capturing market share in many of our core markets.”
Canaccord is an independent, full-service financial services firm, with operations in wealth management and global capital markets.