Apartment specialist Blue Chip Financial Solutions lost $2.6 million in the June half-year, a drastic turnaround after booking a $7 million profit in the previous half-year.
Blue Chip's half-year profit fell 185 per cent and revenue was down 25 per cent.
No interim dividend has been declared.
The
Auckland company, which left the NZX and is now listed only on the ASX, predicted on Friday it would soon return to profitability and make $17.1 million for the full year to December 31.
The company made $14.8 million net profit after tax in the 12 months to December last year.
Blue Chip said it had lost money in the last half-year only because of delays in property settlements.
"Traditionally, some 70 per cent of property sales take place in the second half of the year with sales lifting in spring and settling over November and December," the company told the ASX.
So many property settlements would occur in the second half of this year and the company would then make a big profit, it predicted.
The company is also cutting staff by half at head office in Auckland and said this too would help increase profits.
Marisa Rakich, Blue Chip's marketing communications manager, said 10 months ago the firm had about 100 people working in Auckland.
But Blue Chip announced in its half-year result that staffing numbers were being cut back "by approximately 50 per cent".
This was because Blue Chip was changing its business model, de-centralising administration to its network of 10 licensees.
Marisa Rakich said she was unable to say exactly how many people worked at Blue Chip in Auckland this week. She said staff were in offices other than at level 20 at 191 Queen St.
Aucklander Mark Bryers, a former executive and founder of Blue Chip, stepped off the board a few months ago but still has a large stake in the company.
Rakich said Bryers now held only 18 per cent of the company.
Blue Chip's board is chaired by Julian Gosse and its directors are Andrew Murray, Jock Irvine and Jim Bracknell.
