IPC Financial Network Inc. is reporting a wider loss for fiscal year ended Aug. 31, 2003 due in part to sluggish markets and its failed merger with Dundee Wealth Management Inc.

The company says the loss was $16.8 million, 26¢ per share, compared to a loss of $12.1 million or 20¢ per share, for fiscal 2002.

Revenues for the year slipped to $86.1 million compared to $88.1 million last year.

Assets at the end of the year totalled $113.1 million, down $15.6 million from last year.

On a more positive note, the company says gross margins increased 11% to 43.3%.

The company says it was distracted for almost two-thirds of its fiscal year as it tried to close a publicly announced strategic transaction with Dundee Wealth.

As a condition of the proposed transaction, IPC was required to simplify its capital stock by converting all outstanding preferred shares into common shares on a one-for-one basis and by eliminating all outstanding stock options. An amount of $4.9 million was charged to restructuring and non-recurring costs associated with the reorganization of the company’s capital stock.

IPC terminated the proposed merger after management determined that delays were becoming too disruptive and were not in the company’s best interest.

It then initiated a major restructuring that included the streamlining of some senior management positions, closure of the firm’s Markham, Ont. and Toronto offices, consolidating all operations into its Mississauga, Ont. location, and selling non-core assets.

IPC recorded a total of $13.9 million of restructuring and non-recurring costs during fiscal 2003.

“Despite the trying year our industry has just endured, management is pleased with the results, as they represent a significant improvement over last year”, said Steve Meehan, CEO of IPC Financial Network Inc., in a news release.