Canada’s second-largest non-bank brokerage said it will suspend its dividend, cut its workforce and exit the U.K. and Australia... The no.1 financial New Year's resolution for Australians...
GMP to cut jobs and exit U.K., Australia as commodities slump
(Bloomberg) -- GMP Capital Inc., Canada’s second-largest non-bank brokerage, said it will suspend its dividend, cut its workforce and exit the U.K. and Australia as a plunge in commodities erodes revenue.
GMP will scrap its 5-cents-a-share quarterly dividend and take a C$15 million ($11 million) restructuring charge as it closes offices in London, Perth and Sydney, the Toronto-based firm said Wednesday in a statement. GMP said it has trimmed 97 jobs since the end of September and plans to pare its sales, trading and research business in Canada and its U.S. energy businesses in New York and Houston, which it spent the past two years building up.
“The combination of soft revenue trends and costs associated with the ill-timed expansion into the Houston energy space has resulted in higher operating losses at GMP over the past year," Sumit Malhotra, a Scotia Capital analyst, said in a note.
GMP shares slid 3.1 percent to C$3.80 at 10:41 a.m. in Toronto. The stock has plunged by more than a third in the past 12 months.
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The no.1 financial New Year's resolution for Australians
According to a recent survey by wealth management firm Yellow Brick Road (YBR), saving to invest in property or buy a home made up 40% of Australians' financial New Year’s resolution.
That is well ahead of other financial based resolutions such as decreasing debts (25%), to budget (15%), save for travel (10%) and get superannuation sorted (7%).
“In this current environment, you might expect to see property taking a back seat to financial aspirations such as saving and budgeting or consolidating debts,” YBR spokesperson Lyndsey Douglas said. “However, the Australian dream of owning property and the security that comes with it – is still dominant,” Douglas said.
With a large proportion of Australian’s still looking to be involved in the property market, Douglas said conditions could soon start to favour buyers.
“The property market is changing rapidly with some cooling predicted in previously hot areas,” she said. “The upside is that it might ease some of the affordability pressures faced by first home buyers as competition from other buyers declines.”
In depth: 2016: No crystal ball required
(Bloomberg) -- GMP Capital Inc., Canada’s second-largest non-bank brokerage, said it will suspend its dividend, cut its workforce and exit the U.K. and Australia as a plunge in commodities erodes revenue.
GMP will scrap its 5-cents-a-share quarterly dividend and take a C$15 million ($11 million) restructuring charge as it closes offices in London, Perth and Sydney, the Toronto-based firm said Wednesday in a statement. GMP said it has trimmed 97 jobs since the end of September and plans to pare its sales, trading and research business in Canada and its U.S. energy businesses in New York and Houston, which it spent the past two years building up.
“The combination of soft revenue trends and costs associated with the ill-timed expansion into the Houston energy space has resulted in higher operating losses at GMP over the past year," Sumit Malhotra, a Scotia Capital analyst, said in a note.
GMP shares slid 3.1 percent to C$3.80 at 10:41 a.m. in Toronto. The stock has plunged by more than a third in the past 12 months.
In depth: 7 money-saving marketing hacks
The no.1 financial New Year's resolution for Australians
According to a recent survey by wealth management firm Yellow Brick Road (YBR), saving to invest in property or buy a home made up 40% of Australians' financial New Year’s resolution.
That is well ahead of other financial based resolutions such as decreasing debts (25%), to budget (15%), save for travel (10%) and get superannuation sorted (7%).
“In this current environment, you might expect to see property taking a back seat to financial aspirations such as saving and budgeting or consolidating debts,” YBR spokesperson Lyndsey Douglas said. “However, the Australian dream of owning property and the security that comes with it – is still dominant,” Douglas said.
With a large proportion of Australian’s still looking to be involved in the property market, Douglas said conditions could soon start to favour buyers.
“The property market is changing rapidly with some cooling predicted in previously hot areas,” she said. “The upside is that it might ease some of the affordability pressures faced by first home buyers as competition from other buyers declines.”
In depth: 2016: No crystal ball required
