Australian Ethical profit down 64 per cent
Australian Ethical has reported a net profit after tax (NPAT) of $402,000 for the 2011-12 financial year, down 64 per cent on the previous result.
The company put the drop in NPAT down to the fall in inflows across the industry, lower market values and the decision by Australian Ethical to "gradually reduce management fees".
Australian Ethical also incurred $319,000 in redundancy costs over the year, reducing staff numbers to 36 from 50. The redundancies are part of restructure intended to "reduce operating costs to position [the company] for a more competitive, lower fee environment in the future", according to a statement to the ASX.
The financial year result also included $125,000 in expenses related to shareholder action. In June, a dissident group of shareholders who controlled around 20 per cent of the company were defeated at an extraordinary general meeting in Canberra.
The company also incurred a non-cash impairment charge of $210,000 arising from a three-yearly valuation of a property in Bruce, ACT.
Funds under management for Australian Ethical at 30 June 2012 (before distribution) were $626.6 million, down 3.6 per cent on the previous year. The company saw revenues of $14.8 million, down 5.9 per cent on 2010-11.
Total expenses incurred for 2011-12 were $13.4 million, up 1.6 per cent on the previous year.
The board has announced a fully franked final dividend of 35 cents per share, bringing the total dividend for 2011-12 to 60 cents per share (fully franked).
Australian Ethical managing director Phil Vernon said the past year had seen considerable change for the company.
"In the face of difficult market conditions we have continued repositioning the business from being a high-cost, high priced business to being far more competitive, commercial, service-orientated and efficient," Vernon said.
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