Embattled Trinity posts $226 million net loss
Embattled property funds management group Trinity has posted an after-tax net loss of $226 million for the financial year to June 30, down from a net profit of $34.5 million in 2007-08.
The loss, which was in line with guidance provided to the Australian Securities Exchange (ASX) on August 14 this year, was attributed mainly to a $46 million devaluation of Trinity’s property portfolio and a $54 million devaluation in equity-accounted investments.
It also experienced a $47 million impairment of intangibles in the Trinity Development Group and its funds management business during the year.
Newly appointed managing director Chris Morton said it had been a difficult year for Trinity, as a result of its exposure to property development, but that Trinity was exiting this sector to focus on its core business of funds management.
“We are committed to restoring shareholder and investor confidence and rebuilding the business through a determined focus on funds management and resolving legacy issues that have had considerable media coverage in recent months.”
He said an “immediate critical priority” was for himself and Trinity’s new chairman Brett Heading to meet with investors in the group’s funds over a proposed funds management tender.
“We are seeking from them the opportunity to fully implement our renewal program and demonstrate the true capabilities of this organisation.”
On August 3 this year Trinity’s investor advisory board notified the company that it would recommend launching a tender process for the management of its unlisted managed funds.
On August 24 Trinity announced the appointment of Brett Heading as chairman of its board and Chris Morton as managing director of the group.
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