Profit squeezed at Wilson HTM

Wilson HTM Investment Group is one investment bank whose profits are affected by the decline in the equity market. The group yesterday said it expected to report a net profit around 30 per cent less in the year 2008.

Wilson HTM reported a net profit increase of $16.9 million in the year to June 2007, and a net profit of $9.2 million in the half year to December 2007. So Wilson looks like reporting a profit of only $2.6 million for the current half.

Explanations for the fall, in a statement to the ASX yesterday, include "losses on principal investments" and a lack of performance fees from the Pinnacle Investment Management business. Weak revenues from a subdued pipeline of capital raisings may be a third reason.

Since listing in July 2007 the Wilson HTM share price peaked at $4.60 and yesterday ended at $1.77.