Perpetual hands in a strong report card

Perpetual Trustees Australiatoday reported a full year net profit of $75.6 million, up 38 per cent from the prior year.

Having sold Perpetual Fund Services (PFS), Perpetual was able to reduce its normal operating costs from $245 million to $192 million. Excluding PFS, revenue rose 8 per cent to $296 million.

Perpetual chairman Charles Curran says given the difficult operating environment, the company’s performance was very satisfying.

“The group continued to generate strong cash flows from operations, with our earnings before interest, tax, depreciation and amortisation amounting to $100.7 million, up 23 per cent,” he says.

Perpetual managing director Graham Bradley pointed to the challenges created by high profile corporate collapses and volatile world equity markets as a further mark of success for Perpetual.

“In challenging trading conditions, all our divisions performed well; revenues from our continuing businesses, after the sale of Perpetual Fund Services and the deconsolidation of our share registry business, rose to $244.1 million from $208.4 million,” he says.

“One of the highlights of the year was the strong increase in funds under management by Perpetual Investments which increased from $15.6 billion to $19.4 billion at June 30,” he said.

While strong inflows continued in July 2002, the more difficult market environment and the rate of growth may not match that of recent years.

Bradley said the funds under management increase was helped by a strong performance in Australian equities, where the company achieved top quartile, positive returns for investors.

He said Personal Financial Services performed well during the year, adding $700 million in new fund inflows, including more than 650 new portfolio management accounts entrusting $390 million to Perpetual's care.

The division's revenues increased to $66.3 million from $63.2 million last year.

Bradley said Corporate Trust had a strong year with revenues increasing to $36.6 million from $30.7 million.

“Securitisation funds under administration grew to $52.3 billion, an increase of 24 per cent and we gained several new clients in this area including Mirvac, AM Corporation and ING,” he says.