Prime profits plunge on planning revenue falls
Prime Financial Group has posted a 55 per cent fall in net profit after tax for the 2009 full year, partly as a result of a 30 per cent fall in financial planning recurring revenue and new business.
The diversified wealth manager and dealer group posted net profit after tax of $2.74 million for the 12 months to June 30 this year, down from a net profit of $6.14 million for the 2008 full year.
Its net profit after tax for 2009 was $1.08 million after a non-cash capital loss of $1.66 million on the sale of its stake in funds management business Armytage Private.
The group experienced a 42 per cent fall in earnings before interest and tax to $4.24 million in 2009, compared to $7.41 million for the previous full year.
Managing director Simon Madder described 2009 as a setback amid extraordinarily difficult stock market and economic circumstances.
“In this environment Prime’s business model proved resilient, operations were consolidated and non-core businesses were promptly divested.”
He said financial planning's contribution to second half 2009 earnings was more significant than in the first half.
“Financial planning and new business and recurring income in both the retail and wholesale financial planning operations have steadily improved in line with stock markets and client confidence."
Recommended for you
In this week’s special edition of Relative Return Insider, we bring you outgoing Financial Services Minister Stephen Jones’ keynote from Momentum Media’s Election 2025 event, followed by a Q&A focused on the Delivering Better Financial Outcomes reforms.
In this week’s episode of Relative Return Unplugged, Dr Vladimir Tyazhelnikov from the University of Sydney’s School of Economics joins the show to break down the shifting sands of global trade dynamics and attempt to understand the way US President Donald Trump is employing tariffs.
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.
