DKN posts steady half-year profit
DKN Financial Group has announced steady half-year results, reporting a net profit after tax (NPAT) of $3.73 million, which is 3 per cent short of its NPAT for the corresponding period.
Despite the slight fall in profits, funds under administration (FUA) for the group have continued to build to $7.92 billion, up 6.5 per cent since June last year and 2 per cent on 2010 half year results.
In a statement to shareholders, DKN chief executive Phil Butterworth said the company continued to deliver stable returns to investors despite a difficult environment in the wealth management sector.
He cited a lack of confidence among investors since the start of the global financial crisis as one of the key reasons for a lull in business and low investment flows.
He also pointed to the introduction of the Government’s Future of Financial Advice (FOFA) reforms as having a significant impact on the business to ensure that advisers are “reform ready” ahead of time.
“This has involved a significant commitment from senior advisers and principals, which has had an impact on new business development for many practices,” he said.
Until the lack of clarity surrounding legislative change is resolved, Butterworth said conditions for the sector would remain difficult.
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