HFA net revenue up by 25 per cent

HFA Holdings’ net revenue has risen by 25 per cent in the last financial year, despite a plunge in funds and assets under management, according to financial end of year results released to the Australian Securities Exchange.

The firm’s funds under management dropped by 29 per cent to $5.62 billion over the financial year, while assets under management fell by 34 per cent to $6.16 billion.

The increase in revenue included the first full year’s fee revenue from the merger with United States fund manager Lighthouse Partners. However, an impairment of goodwill relating to the carrying value of Lighthouse affected its net result, according to the statement. The company recorded a loss after tax of more than $573,000, primarily due to the impairment loss.

HFA’s expenses before interest, tax, depreciation and amortisation rose by 5 per cent during the same period to $52.65 million.

HFA has reduced its US debt to $113 million and Australian debt by $3.1 million and extended its loan deadline until 2011.

Chief executive Spencer Young said HFA's commitment to sound processes and good people provided a sound foundation for the company.

“We are proud of the relative strong performance of the group’s flagship funds compared to most major indices during this period, but acknowledge a failure to deliver absolute returns,” he said.