IOOF announces strong result

IOOF appears to have reaped the benefits of having outsourced elements of its information technology systems and having simplified its platform structures, reporting a 25 per cent increase in net profit after tax attributable to members of $46,219,000 — despite revenue from ordinary activities being down 10 per cent.

IOOF managing director Chris Kelaher (pictured) described the result, which was announced to the Australian Securities Exchange this morning, as a significant achievement continuing a string of record profits while delivering on the company’s business simplification strategy.

Pointing to strong inflows into IOOF’s platforms, Kelaher said the result had been achieved organically and had been reached in a short time “despite global markets going against us”.

He said that by rationalising the number of products and systems, IOOF had placed itself ahead of any regulatory change and positioned itself for future organic growth.

“IOOF has a clear and demonstrable record of consolidation,” Kelaher said. “I believe we are one of the few industry participants actively consolidating legacy systems ahead of future regulatory change.”

In a briefing to analysts and shareholders, Kelaher stressed IOOF positioning in the current regulatory environment, saying acquisition opportunities had never been greater and that the company was “the pre-eminent independent consolidator”.