Citco Groups back office and data processing subsidiary in Ireland recorded a pre-tax loss of 1.49 million in 2011, compared to a pre-tax profit of 1.17 million in 2010. The negative swing for Citco Global Securities Services was mainly due to restructuring costs.
Revenues at the company, which recently filed its accounts with the Companies Registration Office, dropped 10%, from 20.2 million to 18 million.
“During the course of 2011, a number of restructuring and cost reduction programmes were initiated in order to improve client services and achieve efficiencies, said the company in its accounts.
“The total costs for restructuring of 2.45m include provisions related to restructuring the company, which include redundancy payments. The majority of these programmes will be completed during Q1 2012 and will result in approximately 49 staff being made redundant.”
Citco Global Securities Services employed 344 at the end of last year. Its staff costs account for the majority of costs.
The company, which has been operating since 2000, had shareholder funds of 7.2m last year, including accumulated profits of 545,000, and cash balances of 10.4m. Amortization and depreciation costs of 271,000 are included in the pre-tax loss for 2011.
(JDC)