Skandia has written down a further 86m in goodwill against loss-making Bankhall, prompting speculation it is preparing to sell the business.
Skandia, in its half-yearly report, says Bankhall’s earnings deteriorated during Q2 last year, announcing that the firm reported a loss of 1.36m for the first half of the year excluding goodwill charges.
The report states the result was adversely impacted by Bankhall’s restructuring costs of around 833,000.
Bankhall currently has a total goodwill of 26.5m, reduced from 193.7m, before the write-downs in December 2004 and June 2005.
Skandia president and chief executive Hans-Erik Andersson says: “Bankhall’s performance has naturally been a disappointment, however, we must adapt the operation to today’s conditions, which have changed dramatically since the acquisition in December 2001.
“Following an in-depth analysis, our conclusion is that anticipated future profits and synergies are considerably lower than what was originally anticipated.”