Clime IM books $1.61m loss

Madison Financial parent Clime Investment Management has reported a difficult first half, reporting a loss of $1.61 million but pointing to cost savings and early signs of improvement.

The first half results, filed with the Australian Securities Exchange (ASX) late on Wednesday, also showed revenue was down 24% to $6.808 million.

The company’s announcement noted that, as previously advised, Clime had “undertaken significant expense rationalisation measures in the last quarter of 2023” and added: “The Board is pleased to advice that these measures have resulted in a profit before tax and amortisation for the months of December 2023 and January 2024”.

The Clime result included $300,000 in redundancy and restructure costs and a further $200,000 in non-recurring expenses noting that “significant investment in system integration has been expensed”.

Looking at Madison, the ASX announcement said that Madison entities had contributed $2.1 million in revenue compared to $1.4 million in the prior corresponding period due to a reduction in the number of advisers.

It said funds management revenue of $3.9 million decreased from $4.5 million.