LONDON (ShareCast) - Stockbroking firm Merchant Securities saw losses increase for the year due to the deterioration of the markets and said it expects conditions to remain difficult.

Pre-tax losses for the year came in at £778,400 compared with the £438,000 loss last year. Turnover rose 30% to £5.3m.

“We expect market conditions to remain difficult, but believe that the diversity of our business activities, namely institutional and private client broking, trading CFDs and corporate finance and corporate broking, combined with a reduced cost base, will assist the Group as we strive to deliver the best possible result for shareholders,” said the group.

The group said its CFD business continues to grow, benefiting from the current volatility in markets, while the John East & Partners' income has diminished as the flotation market has contracted but has generated a small profit in the first quarter of the year.

To mitigate losses, the group said all costs are under detailed scrutiny.

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