DKN posts $13.95 million loss in net profit after tax
DKN Financial Group (DKN) has posted a loss of $13.95 million in net profit after tax (NPAT), according to full year results for the 2011 financial year.
The announcement made to the Australian Securities Exchange (ASX) stated the company's underlying profit was down 4 per cent from $7.64 million in the year ending 30 June 2010, to $7.33 million this financial year.
DKN is currently the subject of a proposal from IOOF Holdings Limited to acquire all the shares it does not already own in DKN for 80 cents a share.
According to the announcement released to the ASX, platform revenue was also down 1.5 per cent, which DKN stated was due to the shift in existing funds under administration (FUA) to lower cost platforms.
DKN said positive platform net inflows were down by 40 per cent compared to the same time last year due to lower investor confidence, the uncertainty surrounding regulatory reform, and the loss of one medium-sized wealth management practice from the network.
The financial group sustained losses, despite FUA growing from $7.43 billion in 2010 to $8.02 billion in 2011, representing a growth of 8 per cent.
Commenting on the results, DKN chief executive officer Phil Butterworth said the market environment was challenging and the company has worked hard to minimise risks.
"Over the last four years, we have positioned DKN to effectively weather the storm of market volatility and legislative change," Butterworth said.
"Overall, DKN is in a strong position for continued growth," he said.
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