By John Wilkinson
EquityTrusteesis on track to post a strong profit result later this year after turning round its half yearly performance with an after-tax profit of $1.2 million for the six months ending December.
The rise is attributable to a growth in revenue and represents a shift in the fortunes of the group, which posted a $2.5 million loss for the corresponding period in 2002.
Revenue was up 35 per cent to $11.2 million, which included the first half year’s revenue of $1.36 million from Wealthpac. The before-tax profit for Wealthpac was $303,298.
Meanwhile, the funds management operation had revenues of $4.3 million in the half, and was also a big increase on the corresponding half last year which posted $2.2 million.
The operation also reported a strong profit of $2.3 million, compared to a $568,000 loss in 2002. The 2003 half profit was boosted by a $1.2 million commission rebate from the December 2002 half.
The traditional trustee business of the company had revenues of $3.6 million and a profit of $887,000.
Equity Trustees managing director Peter Williams says the turnaround in results for the company has positioned it for a strong full year result.
“Our financials have been reconstructed line by line. Management reporting has been improved and opened up, and many hard tasks have been tackled,” he says.
“We have upgraded our business processes and practices and achieved a major cultural change. We now think and act more like a competitive, customer-focused, small-to-medium enterprise.”
Williams says the company will continue to build its funds under management and corporate trust business.
