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.
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