Slow claims hit Lindsey Morden

Second quarter 2000 results for Lindsey Morden (TSE: LM) show the global claims adjusting company suffered a net loss of $5.1 million for the three months ending June 30. The loss, which amounts to 43 a share, largely resulted from a decline in claims activity, the directors report.

Included in the net loss is $4.9 million restructuring cost relating to the slowdown in claims activity — which has been specifically devastating to the company’s U.K. and Canadian operations. Operating earnings (earnings before taxes, goodwill, interest expense and restructuring costs) were down more than 60% compared with that of the second quarter 1999, from $5.9 million to $2.2 million. And revenue in the second quarter was also down 11%, from $107.9 million in 1999 to $95.6 million this year. Again, the company says reduced claims activity, particularly in its U.K. branch, is to blame for the lackluster performance.