Trust emerges from year of change

Specialist trustee company Trust Company Limited has completed a transitional year, announcing a 47 per cent decline in net profit after tax for the year ended 28 February to $10.9 million.

The result was in line with market guidance, with Trust chief executive officer John Atkin saying it was both solid and pleasing in circumstances where Trust had implemented a number of management changes, initiated a detailed review of the business and sold its interest in the Bank of New York Trust Company of Australia — the proceeds of which buoyed the bottom line in the previous financial year.

The company’s results announcement pointed to the fact that Trust’s balance sheet remained strong with zero interest bearing debt, net tangible assets of $73.5 million including $39.5 million in cash, and a decline in operating revenue of only 1 per cent.

Atkin said that some of the fall in the company’s net profit after tax reflected the costs associated with the strategic review and transformation program, and pointed to the improved earnings guidance with respect to the current financial year.

He said that looking over the horizon, Trust had a deep embedded client base, annuity-style revenues and skilled and experienced staff.

“The external drivers of growth for our businesses are strong, both within Australia with our ageing population and in the region where we are the only company licensed to provide trustee services in both Australia and Singapore,” Atkin said.