Acquisitions boost Equity Trustees revenue
Equity Trustees (EQT) has posted a 10 per cent increase in total revenue, driven largely by acquisitions over the past year.
Operating revenue increased from $39.2 million in 2011 to $43 million in 2012 in spite of an 11 per cent year-on-year decline in equity markets.
Equity Trustees chairman Tony Killen said 7 per cent of growth was achieved through acquisitions. He said acquisitions, which include EQT Aged Care Services, had led to a company review of the design and structure of its administration services, systems and processes.
"Although this review will need some capex to release value, we expect that it will provide material benefits in succeeding years," he said.
The project will assess administration programs in conjunction with IT platforms and systems to develop and adopt a simpler, more efficient model and increase automation, EQT said.
Operating expenses increased 13 per cent from $28.4 million to $31.9 million, with $1.9 in new business recurring expenses.
Existing business expenses increased 7.2 per cent or $2 million to $29.7 million.
EQT gained $8.4 million net profit after tax, a 2 per cent increase on 2011, which was bolstered by a pay freeze the company initiated this year to protect margins and restrain cost pressure, Killen said.
Private wealth services amassed 55 per cent of operating revenue, while corporate fiduciary and financial services amounted to 42 per cent.
The company also embarked on a major restructure in August to separate the company into two revenue business units.
The Private Wealth Services unit, headed by Geoffory Rimmer, combined the company' superannuation and private clients business and soaked up its acquisition of the aged care advisory services business.
Recommended for you
In this episode of Relative Return Unplugged, hosts Maja Garaca Djurdjevic and Keith Ford are joined by special guest Shane Oliver, chief economist at AMP, to break down what’s happening with the Trump trade and the broader global economy, and what it means for Australia.
In this episode, hosts Maja Garaca Djurdjevic and Keith Ford take a look at what’s making news in the investment world, from President-elect Donald Trump’s cabinet nominations to Cbus fronting up to a Senate inquiry.
In this new episode of The Manager Mix, host Laura Dew speaks with Claire Smith, head of private assets sales at Schroders, to discuss semi-liquid global private equity.
In this episode of Relative Return, host Laura Dew speaks with Eric Braz, MFS portfolio manager on the global small and mid-cap fund, the MFS Global New Discovery Strategy, to discuss the power of small and mid-cap investing in today’s global markets.
