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RF Capital posts larger net loss in Q1 after buying rest of Richardson Wealth

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TORONTO — RF Capital Group Inc. had a $7.5-million net loss in the quarter ended March 31, the first full reporting period since it acquired full ownership of Richardson Wealth in October.

The company formerly known as GMP Capital Inc. also reported $1.1 million of adjusted net income and $83.7 million of revenue for this year’s first quarter.

RF Capital had a $2.9-million net loss, an adjusted net loss of $1.6 million and $8.8 million of revenue in the first quarter of 2020.

It’s the first time RF Capital has consolidated Richardson Wealth’s results and the first financial report since it received and rejected Canaccord Genuity’s unsolicited takeover bid in March.

Richardson Wealth is one of Canada’s largest independent wealth management firms.

Richardson Wealth’s revenue was up 15 per cent year-over-year, to $80.6 million from $70.2 million. Its net loss was $646,000, compared with a net profit of $1.5 million in the first quarter of 2020.

This report by The Canadian Press was first published May 10, 2021.

Companies in this story: (TSX:RCG)

The Canadian Press