WHK plans improved principal remuneration
WHK group plans to grow its business organically, with improvements to the remuneration model for principals structuring the business to reward performance in alignment with organic revenue growth, according to a statement to the Australian Securities Exchange.
A new shared services support model for support functions will be implemented during the year to aid further operational efficiency and cost reduction in later years, the group stated.
In a letter to shareholders outlining the group's full year financial results, WHK reported a reduction in revenue and earnings in the 2011 financial year, which was offset by a reduction in debt and a significantly improved dividend payment compared to the previous financial year.
Group revenue of $406.1 million was down 2 per cent on the previous financial year, and cash earnings per share dropped 9 per cent to 9.8 cents, WHK stated.
WHK described the results as "solid", and pointed to tough business conditions - particularly in New Zealand where the impact of natural disasters was felt - as contributing factors to the results.
The drop in revenue included a 3 per cent decrease in financial services revenue, with investment markets remaining flat and retail investors maintaining overweight positions to cash.
Operating cashflow of $35.6 million was down from $47.8 million in the 2010 financial year, dropping from $40 million to $31.5 million, and gearing was reduced from 14 per cent to 11 per cent.
"Cashflow from operations remained a strength … and an excellent balance sheet was maintained," WHK managing director John Lombard stated in a letter to shareholders.
The group announced a record full year dividend, with total payments of $18.6 million - almost triple the $6.8 million in the previous year.
A final dividend of 4 cents and a full year fully franked dividend of 7 cents meant the dividend payout ratio to cash earnings per share increased from 55 per cent to 71 per cent, with the group planning to maintain that at or above 70 cents, barring significant acquisitions.
"Whilst exceptional cashflow and strong cost control point to solid management, the focus is on organic revenue growth," Lombard stated.
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