Permanent bounces back from MIA
Permanent Trustees’ three year plan to take the company from its traditional trustee base to a broad based financial services company has shown its first signs of success with the group posting a four per cent jump in first half profit.
The group increased its net profit after tax to $1.8 million in the half year to March 31, up from $1.77 million for the same period last year. The growth in operating revenue was substantially higher at 15 per cent, moving from $16.9 million to $19.5 million.
Managing director Paul Lahiff says the group had experienced growth across the Permanent Business Client Services and Permanent Funds Management and Corporate Clients businesses. However the Permanent Private Client Services arm was a standout with a record $7.07 million in revenue, compared with $4.429 million last year.
Lahiff says the results showed that benefits were beginning to flow from the group's adoption of a three year plan eighteen months ago.
The restructure was prompted by the enactment of the Managed Investments Act (MIA) which allowed fund managers to use an in-house trustee instead of an independent trustee.
As a result this cut into the traditional income base of companies such as Permanent and prompted the push to become a broad-based financial services provider covering private client services and funds management.
"Looking ahead, we are confident that we have the foundations established to provide a solid platform to create future revenue growth and deliver increased value to our shareholders," Lahiff says.
The group also intends to use cash from the sale of its former head office in Sydney to help boost proven revenue streams.
AUTHOR
Jason Spits
Recommended for you
Net cash flow on AMP’s platforms saw a substantial jump in the last quarter to $740 million, while its new digital advice offering boosted flows to superannuation and investment.
Insignia Financial has provided an update on the status of its private equity bidders as an initial six-week due diligence period comes to an end.
A judge has detailed how individuals lent as much as $1.1 million each to former financial adviser Anthony Del Vecchio, only learning when they contacted his employer that nothing had ever been invested.
Having rejected the possibility of an IPO, Mason Stevens’ CEO details why the wealth platform went down the PE route and how it intends to accelerate its growth ambitions in financial advice.
