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Prestbury hit with £1 million loss

Prestbury Holdings has been hit with a £1m loss for the year ending 31 December 2007, down from a £245,778 profit in 2006.

The group says this £1m loss includes the full provision for a related party loan of £850,000.

The firm also revealed in its results that employee numbers have been reduced by an average of 23 per cent.

Prestbury’s average monthly turnover has been reduced by 9.5 per cent to £770,000, down from £851,000 in 2006.

Its average monthly gross profit has fallen by 16 per cent to £160,000, compared to £191,000 in 2006.

The group’s average monthly EBITDA fell massively to £10,000 from £53,000 the previous year.

Prestbury says monthly overheads have been reduced to approximately £96,000 as compared to the average monthly overheads for the period under review of £150,000.

It says that the changes required to generate these savings have had a short term effect on its ability to service its advisor base expeditiously but it says these issues are being addressed.

The firm says: “We reported in January 2008 that the business would be subject to intense pressure and this has materialised. The downturn in the second half of 2007 has naturally impacted the results for the entire financial period, as the effects of the credit crunch became more apparent in the last four months of 2007.

“We expect continuing difficult conditions throughout 2008.”

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