Toronto-based GMP Capital Inc. has reported a net loss from continuing operations of $1.8 million in the second quarter of 2020 — a stark comparison to the net loss of $0.5 million in Q2 2019.
The company listed several factors for the decline, including lower tax recoveries year-over-year, a lower net contribution from its former emerging markets operations, and a decrease in GMP’s proportionate share of Richardson GMP’s net income/loss.
Toronto-based Richardson GMP Ltd. is the company’s wealth management arm.
Richardson GMP, specifically, reported income before taxes of $0.1 million in Q2 2020 compared with the $0.7 million in income reported for Q2 2019.
The decrease is largely due to the reduction of GMP’s share of the brokerage company’s net income/loss attributable to common shareholders amid challenging market conditions.
In positive news, Richardson GMP reported assets under administration of $28.3 billion at the end up Q2 2020, up from its March low of $23.5 billion.
On April 14, 2020, Richardson Financial Group Ltd. and the two investment advisor representatives on Richardson’s GMPs board agreed to extend the contractual negotiating period for GMP’s acquisition of 100% of the wealth management firm to 60 days following the end of Ontario’s Declaration of Emergency.
“The results of the quarter are as expected pending the outcome of GMP’s Special Committee’s discussions on the potential consolidation of 100% ownership of Richardson GMP under GMP,” said Kishore Kapoor, GMP’s interim president and CEO, in a release. “While we await the outcome of these discussions, we continue to manage the business prudently and safely through these challenging times.”