Perpetual’s cautious profit outlook
Just days ahead of entering talks on a takeover bid by New York-based private equity firm Kohlberg Kravis Roberts (KKR), Perpetual has adopted a cautious approach on profit forecasts.
In an announcement released ahead of the company’s annual general meeting (AGM) today, Perpetual’s out-going chairman Robert Savage forecast an underlying profit in the range of $35 million to $40 million with the caveat that “it is difficult to be categorical about the market outlook and consequently about our own performance expectations”.
“If equity markets remain stable for the remainder of the calendar year, we expect our underlying profit after tax for the six months to 31 December 2010 to be in the range of $35 to $40 million,” he said.
Perpetual’s out-going managing director David Deverall used the AGM briefing to say the company would be further sharpening its strategy around providing high quality financial products and services.
The Perpetual Board yesterday rejected KKR’s initial bid for the company but the company’s new chairman, Peter Scott, reiterated that it would be conducting exploratory discussions to determine if a better offer would be forthcoming.
AUTHOR
Mike Taylor
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