Funds spike boosts Investor Group profits
A jump in funds under management has helped listed financial planning business Investor Group post a record net profit of $12.09 million for 2004-05 — a 55 per cent increase on last year.
Funds increased by $1.1 billion across the group’s financial planning, wealth management, superannuation and risk operations, bringing its total amount under management at year’s end to $5.65 billion.
The division increased its net contribution to the group’s result by 62 per cent to $12.21 million, on a 21 per cent increase in revenues to $49.81 million.
This represents a proportional contribution of 30 per cent by the division to the group’s overall profit for 2004-05, up from 12 per cent last year.
Managing director Kevin White is forecasting an 18 per cent rise in operating revenue this year due to growth in the financial planning sector and additional new clients.
“Further strong organic growth in financial services is expected over the next 12 months, with financial planning demand expected to remain healthy on the back of favourable demographics, legislated growth in super and the absence of a major downturn in financial markets,” he said.
Growth in the company’s business services division was the main contributor to the 2004-05 result.
It increased revenue by 31 per cent to $151.69 million and lifted net profit contribution by 35 per cent to $28.46 million.
New client services, including finance broking, estate planning and risk insurance broking, are expected to make a stronger contribution during 2005-06.
The group is forecasting operating revenue of $238.0 million in 2005-06, after recording $201.5 million in 2004-05, which was itself 28 per cent up on the previous 12 months.
The group has also predicted a 19 per cent increase in earnings before interest, tax and amortisation to $33 million from 27.9 million in 2004-05.
The firm declared an increase in the final dividend to seven cents per share fully franked.
Total dividends for the year ended June 30 were 12.5 cents per share fully franked, up from 11 cents in the previous year.
Recommended for you
In this week’s special episode of Relative Return Unplugged, we present shadow treasurer Angus Taylor’s address at Momentum Media’s Election 2025 event, followed by a Q&A covering the Coalition’s plans for the financial services sector.
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
In this episode of Relative Return, host Laura Dew is joined by Andrew Lockhart, managing partner at Metrics Credit Partners, to discuss the attraction of real estate debt and why it can be a compelling option for portfolio diversification.
In this week’s episode of Relative Return Unplugged, AMP’s chief economist, Shane Oliver, joins us to break down Labor’s budget, focusing on its re-election strategy and cost-of-living support, and cautioning about the long-term impact of structural deficits, increased government spending, and potential risks to productivity growth.
