Clarkson Hill reveals FSA probe into systems and controls

2 July 2010 0:00 am | Updated: 2 July 2010 12:06 pm | By Natalie Holt

Clarkson Hill has revealed it was subject to a regulatory review of its systems and controls during the second half of last year, as it posted pre-tax losses of £636,699 for 2009.

The company says independent consultants have reviewed the group’s processes and revisions have now taken place to bring them in line.

This has resulted in what the company terms as “significant exceptional costs” of £230,787.

The company’s results for the year to December 31, published today, show that Clarkson Hill posted a pre-tax loss on ordinary activities of £636,699 - a marginal improvement on the £669,207 losses posted for the prior 17 months.

The results also reveal Clarkson Hill has been invoiced for £105,000 in relation to the £80m Financial Services Compensation Scheme levy for Pacific Continental Securities (UK), Square Mile Securities and Keydata Investment Services.

The £105,000 has been backdated to 2009 and been reflected in the accounts and identified as an exceptional item, as it is now subject to the judicial review.

A further £129,320 of exceptional costs were incurred as a result of redundancies and the renegotiation of office contracts.

In total, Clarkson Hill were hit with exceptional costs of £465,107.

Following the losses incurred in 2009 and the increased regulatory costs, the group needs to raise further capital to meet regulatory capital requirements.

The directors are currently in discussions with a number of parties and say they are confident that this objective will be achieved.

Clarkson Hill had its shares suspended from trading on AIM yesterday as it was unable to publish its accounts on time. After publishing its accounts today, it has now been able to resume trading.

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