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Curtis Banks Group PLC on Thursday said it swung to an interim loss due to a goodwill charge for its subsidiary Dunstan Thomas Group Ltd, while interim revenue remained broadly flat.
For the six months that ended on June 30, the Bristol-based self-invested personal pension provider swung to a pretax loss of £5.3 million from a profit of £5.1 million a year earlier.
The firm said the figure was impacted by a £9.8 million goodwill impairment charge relating to the acquisition of Dunstan Thomas.
Curtis Banks said the FinTech provider has experienced difficulty securing material new revenue flows in the half-year period this year in addition to a reduction in project activity from a key client.
This resulted in lower than expected sales during the period. Fintech division's revenue declined by 21% to £4.1 million from £5.2 million.
Curtis Banks said it remains focused on improving the performance of Dunstan Thomas's third party business, and added that the ‘sales pipeline for the second half and 2023 remains strong with expectation of increased margins’.
The company roughly maintained its overall revenue of £32.2 million during the period, compared to £32.3 million a year ago.
Executive Chair David Barral said: ‘Although our FinTech segment delivered lower than expected results against challenging market conditions, we are positive on the medium-term outlook for Dunstan Thomas to grow its pipeline, while continuing to support the group's wider technology strategy.’
The firm declared an interim dividend of 2.5 pence per share, unchanged from a year prior.
Looking ahead, Curtis Banks expects revenue and profit margins to increase in the medium term.
Shares were down 2.5% at 255.00 pence each on Thursday morning in London.
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