DKN groups recover – mostly
DKN Financial Group has stated that five of the six firms it holds an equity position in have recovered well over the last quarter, however, one continues to struggle.
DKN chief executive Phil Butterworth said five firms they are invested in are recovering well as client bases increase.
However, he said one firm is struggling to recover from the last 12 months due to its larger size.
“Given the large amount of infrastructure there it just takes a while to generate the revenue to get back to their previous levels of profit.”
DKN is in regular communication with the struggling firm assisting with ideas and strategies to get them back on track.
The firm will have until June 2010 to show signs of recovery before DKN will either merge it with another firm or sell it, Butterworth said.
“I don’t like having an underperforming asset," he said.
While the firm is “not performing fantastically”, it will have no material impact on DKN, Butterworth said.
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