Loss of James Hay contract contributed to GBST loss
Share
GBST Wealth Management, which administers funds in Australia and the UK, saw revenue drop from £15.5m, or AUS$28.99m, in 2008 to £12.5m or AUS$23.49m, this year, and an EBITDA of £1.7m, or AUS$3.30m, from £3.4m, or AUS$6.40m in 2008.
A director’s report on the Australian Securities Exchange says: “The UK operations of the division were impacted by the cancellation of the James Hay contract in December 2008. James Hay decided to change its strategic direction and business model.
“The decision to change its business model in the face of the global financial crisis and cancel deployment was a significant setback for our UK operations and revenue decreased substantially.”
GBST said an impairment loss of £135,000, or AUS$252,000, was recognised in the UK contracts due to change in “wealth management contracts”.
Going forward, the director’s report said: “GBST is still committed to our current UK clients and prospects and is continuing to invest in enhancing the Composer platform for the UK market.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
