Perpetual to sell PLMS amid transformation
Perpetual has initiated a significant cost reduction regime as the outcome of a strategic review, with the announcement of a range of measures including the sale of Perpetual Lenders Mortgage Services.
The company announced to the Australian Securities Exchange (ASX) today that at the same time as it would be cutting costs, including reducing overall board costs by approximately 30 per cent, it would be driving growth in key areas including in the area of Perpetual Private Wealth.
Explaining the moves today, Perpetual chief executive and managing director Geoff Lloyd said that over the next three years the company would embark on a transformation strategy that would significantly simplify its corporate structure and refocus its operational activities to capture new opportunities.
"The program we are announcing today will deliver ongoing annual cost savings of $50 million pre-tax in Financial Year 2015 through a program of asset sales and business reorganisation," he said.
The sale of Perpetual Lenders Mortgage Services will entail 280 full-time equivalent roles leaving Perpetual.
The changes announced at Perpetual today come at the same time as continuing market speculation around private equity interest in the company.
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