(December 20 – 16:00 ET) – Sceptre Investment Counsel Ltd. is reporting weaker results for the 2000 fiscal year ended November 30.

Earnings for the fourth quarter were 16¢ a share, down from 28¢ a share in 1999, including a one-time charge equal to 5¢ a share in 2000 for an advisory fee paid in forming the alliance with Putnam Investments Inc. in September.

Earnings for the year are 91¢ a share down from $1.11 a share in 1999. Revenue for the year was $49.8 million, compared with $56.6 million in 1999. Nevertheless, the company has declared a quarterly dividend of 26¢ a share payable on January 15, 2001.

For 2001, Sceptre says it will begin to account for the investment management fee it pays to Putnam for the continuing management of its foreign pooled funds. The fee will be the equivalent of 10¢ to 15¢ per share. The company also points out that there will be the lagged effect on next year’s earnings from business lost this year. “In the first quarter, the company will consider its financial resources, market conditions and future strategic opportunities but at this point a dividend reduction seems likely.”

“This is a challenging period for Sceptre but one of significant progress as well,” said William Malouin, president and chief executive officer. “While our earnings are disappointing, we have made a number of strategic changes that have already begun to improve performance and position us for growth as we move forward.”
-IE Staff