MDS Financial Group well placed despite adverse markets

In an announcement to the Australian Stock Exchange this morning , accompanied by the half year financial reports to 31 December 2008 Sean Rothsey Chairman of MDS Financial Group Limited stated “I wish to highlight to the market the current deterioration in global markets which has had a particularly severe impact on the financial services sector and the adverse market trends and sentiment that have additionally made for a significantly tough trading environment for the Company. The results for the Company should be regarded within the context of the difficult times for a company in this sector. These results are pleasing in that context and I commend the efforts of management and staff, who have ensured that the Company is so well placed at this time post consolidation for both preservation and growth.”

MDS reported revenue for the half year was $3,369,187 and the Company is conservatively forecasting a 12 month revenue to 30 June 2009 of $6,200,000, having adjusted its internal forecasts downwards owing to the current deterioration in global markets which has had a particularly severe impact on the financial services sector. Additionally, the Company is conservatively forecasting revenue for the 12 month period to 30 June 2010 of $6,300,000. In forecasting, the Company has allowed for the possibility of customer attrition of approximately 100 customers per month and a conservative forecasting of customers returning to the business as they begin to trade again. This, combined with new business through cross selling across the Company’s substantial customer database and customer acquisition programs, should see revenues consolidate. The Company believes that it is a testament to both its products and services, and staff enthusiasm (that have manifested in greater efficiencies, motivation and morale) to mitigate these customer and revenue losses in the current trading climate.

This half year’s loss of $544,349 was greater than anticipated but, with the initiatives implemented and currently being undertaken, the Company can now forecast a 12 month loss to 30 June 2009 of less than $350,000 and a forecast profit of approximately $600,000 for the financial year to 30 June 2010.

MDS Financial Group Limited (MDS) is a public listed company on the Australian Stock Exchange and provides share market advice, analysis, data, online trading and research.

The Merkin Group has a substantial shareholding in MDS Financial Group Limited and Sean Rothsey is also Chairman and CEO of The Merkin Group. Speaking from Cooroy Sean said that “The Merkin Group see their strategic investment in MDS Financial as a continuing  part of their business notwithstanding the current adverse market conditions and low share price . We remain as a shareholder and will continue to do so as we see tremendous growth potential in this business”.

Read the full announcement here