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Kingsway International Reports Financial Results for Fiscal Year Ended June30, 2009

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^{Published in Business and Finance on Tuesday, September 22nd 2009 at 18:07 GMT by Market Wire}  

 Financial highlights for the fiscal year include: - Net loss was $6.7 million, or $0.0839 per share, compared with a net loss of $15.3 million, or $0.1906 per share, for the same period last year; - Revenue from services and other income decreased to $11.4 million, compared with $23.8 million for the same period last year; - Trading loss from financial assets held for trading was $1.3 million, compared with a net loss of $15.6 million for the same period last year. 

 Segmented Results of Operations for the fiscal year ------------------------------------------------------------------------- Corporate Investment in Finance & Securities Corporate Capital Asset & Structured and Other Brokerage Markets Management Investment Activities $'000 $'000 $'000 $'000 $'000 ------------------------------------------------------------------------- Commission & fee income 5,991 2,133 130 64 877 Interest and other income 500 206 50 1,404 44 Trading (loss)/ income (44) (617) (794) 126 2 ------------------------------------------------------------------------- 6,447 1,722 (614) 1,594 923 Inter-segment revenue 92 - 48 - 2,661 Selling and administrative expenses (8,893) (3,174) (278) (1,931) (5,603) Share of loss on investments subject to significant influence (83) - (37) (1,699) - Other expenses (140) (37) (2) (457) (535) ------------------------------------------------------------------------- Loss before income taxes and non- controlling interests (2,577) (1,489) (883) (2,493) (2,554) ------------------------------------------------------------------------- - Brokerage Revenue for FY2009 decreased to $6.4 million, compared with $13.8 million for last year. The decrease in commission and fee income by 43% to $6.0 million in current year was mainly attributable to the depressed market conditions. As a result of the shrinkage in the Group's margin loan portfolio, reduction of interest rates and reduction in the number of initial public offerings ("IPO"), interest and other income decreased to $0.5 million for FY2009, compared with $3.4 million for FY2008. The division recorded an overall loss of $2.6 million in current year, compared with income of $1.5 million for last year. - Corporate Finance & Capital Markets Total revenue decreased to $1.7 million for FY2009, compared with $7.7 million for FY2008. The significant decrease was mainly due to the significant reduction of IPO activities in the market, leading to the drop in fee income from underwriting and placements transactions. The division recorded an overall loss of $1.5 million for the year, compared with an income of $1.6 million in last year. - Asset Management Trading loss of $0.8 million was recognised for FY2009, compared with trading income of $1.2 million for FY2008, attributable to the loss on disposal of an investment received as management fees in prior years. The division recorded an overall loss of $0.9 million in FY2009, compared with an income of $0.7 million in FY2008. - Investment In Securities and Structured Investment Total revenue of $1.6 million was recognised in the division in FY2009, compared to negative revenue of $16.2 million in FY2008. The improved performance was due to the correction of the Hong Kong market. In addition, the Group's portfolio outperformed the Hang Seng Index for the same period, attributable to our successful strategy on focusing in companies connected with the PRC. The division recorded an overall loss of $2.5 million for FY2009, compared with a loss of $21.0 million for last year. - Corporate and Other Activities The corporate and other activities of the Group incurred an overall loss of $2.6 million for FY2009, compared with a loss of $1.2 million for FY2008. The increase in the loss was mainly attributable to the slight decrease in the revenue sourced from the Group's technology division and to an increase in expenses associated with the implementation of the Company's new business plan.