Lindsey Morden’s revenue and earnings fall

Reduced claims activity in Canada and the U.K. markets have impacted heavily on revenues of claims adjuster Lindsey Morden Inc. (TSE:LM), which reported a 20% drop in turnover to $88.2 million (1999: $109.8 million) for the first quarter of the 2000 financial year.

The company disclosed a loss of $6.7 million (1999: $2.3 million loss) for the current reporting period, amounting to a loss of 56c a share compared with 20 a share loss for the first quarter of 1999. The company also reported an operating loss (before finance charges, taxes and goodwill) of $6.8 million compared with an operating profit of $1.5 million achieved at the end of the same period in 1999. “The decline in revenue and operating results in the first quarter of 2000 was mainly due to a lack of claims activity in the company’s U.K. and Canadian operations which was only partially offset by profitable operating results in the company’s U.S., European and international operations,” the directors state.