Managed Accounts Holdings have reported a $2.5 million dollar loss in the 2017-18 financial year, with the cost of acquiring Linear in late 2017 weighing on profits.
In a statement on the ASX, the company said it made a net loss of $2.5 million dollars in the most recent financial year, after making a $0.67 million profit in the previous reporting period.
“The loss included $1.26 million acquisition costs, a $1.93 million asset write off mainly relating to the write off of discontinued software being developed and non-cash employee share option scheme expenses of $0.28 million,” the statement said.
ifa understands this write-off was the result of the business cancelling the outsourced development of new customer front-end software after the acquisition of Linear permitted the development to be conducted in-house.
The development of the new software is expected to be completed by the fourth quarter of this year.
The business’ adjusted earnings before interest tax depreciation and amortisation (EBITDA) was $2.87 million, 95 per cent above the previous financial year and “comfortably” higher than the company’s previous guidance.
Managed Accounts Holdings chief executive David Heather said these results indicated the “early benefits” of the Linear merger.
“The merger with Linear has been a transformational transaction for the business, enabling it to consolidate its evolving position as a leading provider of investment administration solutions in the Australian market with a specialisation in managed accounts,” Mr Heather said.
The business’ funds under administration at the end of the 2017-18 financial year was $13.09 billion, the statement said.
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