Perpetual profit up by third
Perpetual Trustees today announced it had posted a net profit of $40 million for the past financial year, up 31 per cent on the previous year.
Perpetual Trustees today announced it had posted a net profit of $40 million for the past financial year, up 31 per cent on the previous year.
However the fund manager said it may not be able to achieve the same level of strong growth in funds inflow in the coming twelve months due to further pressures from the Managed Investments Act (MIA).
Despite the impact of the MIA, Perpetual increased net profit by 7.3 per cent to $30.7 million and bolstered the overall figure by a further $9.6 million on the sale of some of the company's equity portfolio.
Managing director Graham Bradley said the profit figure was the result of diversification and growth strategies that Perpetual has pursued in its wealth management services and outsourced support services.
Perpetual Investments' total funds under management grew 68 per cent to $11.6 billion from $6.9 billion while Perpetual Private Clients saw an additional $275 million being entrusted by over 600 new portfolio management clients.
At the same time Perpetual Superannuation revenues increased to $17.8 million from $9.7 million however Perpetual Fund Services took the biggest hit from the MIA revenues declining from $44.4 million to $31.4 million.
“As corporate trustee business transitioned to the new arrangements, the division has had to reshape itself during the year, and has established a firmer base for its operations moving forward,” Bradley says.
Revenues from its activities jumped 30 per cent to $280.39 million while earnings before interest, tax, depreciation and amortisation (EBITDA) grew to $71.4 million, from $60.4 million previously.
Chairman John Lamble said a strong second half ensured Perpetual "picked the leeway from our half-year position when we were $1.2 million behind the previous corresponding (half)."
Shareholders in the group will receive a dividend of five cents per share, on top of the two 30-cents dividends paid during the year, bring the total for the year to 65 cents, fully franked, up from 60 cents previously
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Jason Spits
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