Allco posts $93.2 million profit

The Allco Finance Group has posted a half-year net profit for the period ended December 31, 2006, of $93.2 million, up from the $46.4 million achieved by Record Investments as a standalone entity for the previous year’s corresponding period.

Net revenue for the group came in at $191.8 million, with strong contributions from the organisation’s wealth management arms.

Of the total net revenue, Allco’s Specialised Funds Management division accounted for $77.2 million, while the entity’s Wholesale Financial Services area generated revenue of $8.9 million.

The strength of performance exhibited by these two business arms led to the group experiencing an increase in assets under management of 36 per cent, finishing the half-year at a level of $6 billion.

Furthermore, Allco’s financial assets under management rose by 30 per cent and now sits at $4.8 billion.

The half yearly results mean the group is now forecasting a full year net profit of $142.7 million.

“Today’s result reflect a positive six months for Allco and, more importantly, it demonstrates the benefits for shareholders of merging Allco and Record to create a fully integrated global financial services business with a strong capital base,” Allco executive chair David Coe said.

“We are very pleased with the progress made in developing a platform to drive sustainable earnings growth while delivering on our earnings and dividend targets articulated at the time of the merger,” he added.