Van Eyk Research improves bottom line
Van Eyk Research improved its bottom line last financial year, with revenue generated from investment management services outstripping revenue from its research subscriptions.
The research house posted net profit for the 2009-10 financial year of approximately $536,000, up from the $419,000 recorded the previous year and a significant turnaround from a $54,000 profit posted in 2007-08.
Van Eyk Research chairman Cameron McCullagh said the group had exceeded $10 million in revenue for the first time in the company’s history, with revenue from investment management sources, at $4.6 million, outstripping those from research subscription services, at $3.7 million.
Revenue from the group’s fund of funds product, Blueprint, was close to $4 million, up from just under $3.5 million the previous year, rising on the back of recovering funds under management (FUM). Blueprint has $1.3 billion in FUM. Revenue from asset consulting service, meanwhile, was up 25 per cent.
The annual report points to an increase in the number of iRate licenses on issue at 6,817, up from 5,102 in the previous year. That group said that represents subscriptions from more than 40 of Australia’s biggest dealer groups, with four of the industry’s top five biggest dealer groups subscribers at 30 June, 2010.
The research house said it had seen continued demand for its annual conference in 2009-10, while continuing to receive advertising revenue for van Eyk: The Magazine.
Relationships with external providers for property and structured products research continued to deliver revenue to the research house, as did its superannuation alliances.
The group ramped up its marketing and sales efforts during the year, with costs in that area increasing by 37 per cent, to over $1 million. Employee costs over the same period were reduced by 3 per cent, to $6.1 million. McCullagh said the increase in net profit had been achieved notwithstanding the recommencement of the group’s employee short-term incentive scheme after its suspension the previous financial year.
A number of key executives left in the 2009-10 financial year, including co-founder and former managing director Stephen van Eyk and a number of researchers and non-executive directors.
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