Toronto-based Aston Hill Financial Inc. has suspended its quarterly dividend, amid deteriorating financial results.
The firm announced the suspension on Monday, in conjunction with its latest financial results, which include a $12.5 million net loss for the fourth quarter ended Dec. 31, 2015 and a $14.2 million loss for the year.
The weak financial results follow a 35% decline in revenues in the fourth quarter, and rising expenses due to an impairment loss on intangible assets the firm recorded in the fourth quarter.
Suspending the dividend creates an additional $2.0 million of liquidity per year, the firm says in its announcement.
“As we continue into 2016, revisiting the way we allocate capital is part of our effort to position Aston Hill for this growth. The decision to suspend the dividend provides the opportunity for us to more flexibly allocate capital to other internal initiatives and reinvest in Aston Hill,” says recently appointed president and CEO James Werry.
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“Corporate initiatives that contribute to increasing assets under management as well as building on our relationships with investment advisors are key areas of focus for us,” he adds.
For 2015, the firm saw assets under management (AUM) decrease by 11.9% year-over-year from $3.03 billion to $2.67 billion (at December 31, 2015).
“The lower AUM is mainly the result of a reduction in institutional and sub-advisory assets and assets under administration,” Aston Hill says.
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