Clime Capital seeks M&A opportunity amid industry consolidation

Clime-Investment-Management/clime-capital/acquisition/M&A/financial-results/

27 February 2023
| By Laura Dew |
image
image image
expand image

Clime Capital has indicated it could take up new M&A opportunities as the firm opts to hold onto cash rather than pay an interim dividend.

In its results for the six months to 31 December, the firm reported a $236k statutory net profit after tax (NPAT) which it said was down 47% from $445k a year ago due to planned integration costs of strategic acquisitions. 

Having acquired wealth manager MTIS and Ralton Asset Management and formed strategic alliances with Marcus Today and Torica Capital, it indicated it could pursue more opportunities later in the year.

Chief executive, Annick Donat, said: “A growing industry demand for managed accounts, the private wealth merger with MTIS, the full acquisition of Ralton and the strategic alliances with Torica and Marcus Today positions Clime Group to provide high quality, diversified investment solutions across market segments.

“Given recent disruption and consolidations in the financial service sector, the group foresees a range of highly attractive opportunities. To be an active participant in the industry consolidation, the Clime board has elected to reserve capital in the first half of FY23 and not pay a first half dividend.”

Funds under management and advice increased by 8% from $5.1 billion to $5.5 billion during the six months and fund management fee income was $4.5 million, down $0.7 million on the prior corresponding period. This was related to the timing of net outflows and inflows during the six months.

Performance fees were $1.4 million from the Clime Capital listed investment company and Clime All Cap Australian Equity fund. 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

3 weeks 6 days ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS