The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Benchmark (Bahamas) yesterday warned investors to expect a “reduction in income”in 2013, due to the pending liquidation of one of its key clients.

This development, unveiled by president and chief executive, Julian Brown, took the gloss off an improved 2012 third quarter, with the BISX-listed company’s net loss dropping to $0.01 per share compared to $0.28 per share the year before.

The liquidation referred to, while the client was not named, is likely to be that of BC Capital Group. Tribune Business previously revealed how that company has been charged by committing a $140 million investment fraud by US regulators.

Benchmark’s wholly-owned broker/dealer subsidiary, Alliance Investment Management, provided custodian services to BC Capital, although there is no suggestion of wrongdoing by it or its staff.

For the nine months to end-September 2012, Benchmark saw its net loss drop from $0.33 per share to $0.08 per share year-over-year.

Mr Brown said Benchmark’s performance was “showing major signs of improvement” despite the continuing losses and “headwinds’ faced by its investment portfolio.

The company’s net realised and unrealised losses on its investment portfolio dropped to $217,916 for the first nine months, compared to $1.417 million in the 2011 same period.

Benchmark’s consolidated net loss for the first nine months was $419,193, compared to $1.65 million last year a 74.6 per cent reduction.

Benchmark’s contribution for the same period was a $549,520 loss, with Alliance and Benchmark Properties generating net income of $127,436 and $9,885. Benchmark Advisors posted a $6,994 loss.

Revenues for the first nine months were flat, and expenses down 2.46 per cent.

For the 2012 third quarter, improvements in its international investment portfolio drove the improved results, generating a $78,640 realised and unrealised gain, as opposed to a $1.164 million loss in 2011.

Revenue for the third quarter rose by 7.41 per cent, while general and administrative expenses were down 11.66 per cent.

Mr Brown said he hoped the BC Capital liquidation impact could be mitigated by the improved portfolio showing and full occupancy of its Carmichael Road commercial property.