NZ Funds mildly optimistic about this year
The company made a net profit of $5.5 million in the 12 months ended August 31, down from $8.2 million a year earlier as declining revenues took their toll. Total revenue fell 26% to $20.7 million.
Chief executive Richard James said they have tried to offset the falling income by "very aggressively" cutting back costs and not replacing staff as they depart.
"We had about 105 people at the peak, probably in the middle of 2007, now we're closer to 80," James told Good Returns. "The principals have foregone their contingent income for the past two years."
James said they had kept a lot of cash on hand to keep debt from becoming an issue, and to take advantage of any opportunities that arise, though he said none were in the pipeline. The firm had some $11.3 million in cash or in short-term deposits as at August 31, compared to $10.6 million a year earlier.
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