Fexco profits down 97% to €1.4m

FINANCIAL SERVICES firm Fexco suffered a 97 per cent drop in pretax profits to € 1.4 million in 2007 due to a loss of over € 20 million at its subsidiary FAI Finance.

In 2006, profits at the firm soared due to its disposal of interests in firms such as Global Refund. FAI Finance, a company in which Fexco held a 51 per cent interest, had been involved in providing loans to local authority tenants in the UK. However, it ran into difficulties last year due to the non-repayment of loans, and it went into liquidation on February 4th, with resulting losses of €21.5 million at Fexco. According to Fexco, no further losses are expected to be incurred as a result of the liquidation.

Profits at the financial firm, whose principal activities include bureaux de change and stockbroking services, were also hit in the year ending December 31st, 2007, by an impairment loss of € 5.5 million in respect of one of its travel and leisure internet investments.

Turnover increased by 3.9 per cent, up to € 205 million from €196.4 million in 2006, while turnover from continuing operations increased by 7 per cent.

Commenting on trading performance in the first nine months of this year, a spokesman said that while the climate had become difficult, the credit crunch had not significantly impacted on Fexcos businesses, and he expected profits to be "healthy and substantial" for 2008. Earlier this week, Fexco made €2.7 million from the sale of its 67.5 per cent share in pensions consultancy firm Pensco, which was sold to financial services firm IFG.