DKN's Lonsdale merger pays off
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Financial planning dealer group DKN Financial has claimed its decision to merge with Lonsdale has been vindicated after reporting a 5 per cent decline in net profit after tax to $3.4 million for the six months to December 31, 2008.
Releasing the company’s preliminary first half results to the Australian Securities Exchange today, the company said they vindicated the Lonsdale merger, which had delivered greater breadth and scale for DKN and therefore enabled it to maintain its relatively strong market position.
However, it said while net inflows had remained positive they had been affected by a general lack of confidence and the flight of cash driven by the Government’s bank guarantee.
The company also identified impairments valued at $17.7 million.
Commenting on the result, DKN chief executive Phil Butterworth said the current investment climate had directly impacted the company’s funds under advice and its carrying values on the current balance sheet, resulting in a drop in group revenue.
However, he said DKN remained strongly committed to the long-term value of the wealth management sector and that the company remained well-positioned in a consolidating market and was set to grow as the market stabilised.
AUTHOR
Mike Taylor
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