NORTHERN FINANCIAL REPORTS PROFIT FOR QUARTER ENDING MARCH 31, 2011

(TSX: NFC)

NORTHERN SECURITIES REPORTS PROFIT FOR FISCAL 2011

TORONTO, June 29, 2011 /CNW/ - Northern Financial Corporation (TSX: NFC) ("Northern" or the "Company") today reported its financial results for the fiscal year ended March 31, 2011 and the financial results of its wholly owned subsidiary, Northern Securities Inc. ('Northern Securities").

"We are very pleased with the solid profitability in Northern Securities in fiscal 2011.  With our all equity balance sheet, our interest expense has been eliminated which will hopefully position Northern, the parent company, to reach breakeven profitability or better in Fiscal 2012." stated Vic Alboini, Chairman and Chief Executive Officer.

Northern Securities has improved its results significantly in fiscal 2011, moving from a loss of $290,839 in 2010 to a profit of $830,656 in 2011.  Northern Securities had positive net income for each of the quarters ended September 30, 2010, December 31, 2010, and March 31, 2011.

On a consolidated basis, taking into account public company expenses and interest expense, the Company reported a profit of $19,921 for the quarter ended March 31, 2011.  The Company has now reported profits for two consecutive quarters.

For the year ended March 31, 2011, the Company reported an improved loss of $1,322,019 for fiscal 2011 compared to a loss of $2,968,329 in the prior year.

Total revenue for the Company for the year ended March 31, 2011, was $12,156,007 compared with $10,338,844 in the prior year.  Commission revenue of $6,268,739, was up from the prior year amount of $5,952,798 as investors re-entered the capital markets and the Company increased its retail sales force.   Underwriting and advisory revenue increased to $3,814,730 from $2,169,664 in fiscal 2010, as the Company participated in a greater number of financings and merger and acquisition assignments.  Broker warrant revenue was $1,991,257 compared to $1,203,803 in the prior year.  The increase was a result of the greater number of financings undertaken.  Trading revenue was a loss of $282,745 due to a trading error, compared to a gain of $233,633.  Interest revenue of $303,606 was up from $106,638 due to increased spreads.   There was no merchant banking activity in the current year.

Total expenses increased from $13,338,190 in fiscal 2010 to $13,449,555 in fiscal 2011 as a result of increased variable compensation.

Included in net income was income of $56,495 representing the Company's share of the earnings of Jaguar Financial Corporation, compared to $31,017 in the prior year.

The Company reduced its debt compared to the prior year of $3,150,000 to $395,000, and has cash, deposits, and investments at fair value of $3,275,841.

Northern Securities further announces that it has terminated its engagement with Win-Eldrich Mines Limited. The engagement was previously announced on February 1, 2011, and related to a proposed financing of up to $1.75 million.

About Northern Financial Corporation

Northern Financial Corporation wholly owns Northern Securities Inc., a full service investment dealer that provides financial advisory services to retail and institutional clients and investment banking services to small capitalization companies.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.

SOURCE Northern Financial Corporation

For further information:

Vic Alboini     or     Doug Chornoboy
Chairman and CEO          Senior Vice President and CFO
(416) 644-8110          (416) 644-8150

 

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Northern Financial Corporation

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