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
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