Aust Unity profits on restructure
Rohan Mead
Australian Unity has reported a 35 per cent rise in after tax profit of $32.1 million for the 2007 financial year.
The mutual financial services company also reported an 11.3 per cent rise in revenues for the 12 months to $684 million.
Australian Unity group managing director Rohan Mead said it was another good year for the company as the business restructured into three core areas — healthcare, financial services and retirement living.
“This was the year of reshaping the company into a ‘wellbeing’ business. We will be better placed to provide high quality and well targeted services that will contribute to our members being healthy, happy, secure and prosperous,” he said.
However, it was not all good news and ‘wellbeing’ at the results announcement.
The company’s financial planning arm continues to bleed, reporting a $5 million loss in the 2007 financial year.
Mead said while revenue was up 48 per cent to $2.3 million, losses continued to grow.
“This year we completed restructuring the business and this has led to the loss growing,” he said.
“We are investing in new advisers and it takes time for them to build up production.”
The financial planning arm now has 30 financial planners spread along the eastern seaboard as well as six mortgage and risk brokers.
Mead said while it was still a small business it planned to increase adviser numbers, but at a steady pace and mainly in its existing geographical footprint.
A brighter picture is developing, however, at Australian Unity’s funds management business, which has reported a 60 per cent jump in funds under management to $5.7 billion.
The division reported a pre-tax profit of $7.1 million, which is up 35 per cent on the corresponding period in 2006.
Mead said the amount of funds under management in equities had grown dramatically due to inflows at Platypus and Acorn funds management. Both managers now have more than $1 billion of funds under management respectively.
As part of the restructuring of Australian Unity, the company sold its general insurance business for $62.5 million during the year.
It also sold the Freedom of Choice platform to Equity Trustees for about $5 million, which Mead said fell outside the funds management business the company was developing.
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