Prime Financial takes profit hit
Prime Financial Group experienced a one quarter drop in profit for the 2012 financial year, which it attributed to low investor confidence, market uncertainty, the declining stockmarket, regulatory change and pressure on margins.
The integrated wealth management group, which currently has 20 financial advisers in addition to accountants and other staff, posted a net profit after tax of $2.81 million - down 27 per cent on the previous year.
Normalised earnings before interest and tax (EBIT) dropped 9 per cent to $5.02 million and reported EBIT (including one-offs) dropped 21 per cent to $4.32 million.
One-off costs impacting NPAT and reported EBIT included a capital loss of $0.7 million relating to a non-core accounting form investee, Prime stated.
Total funds under management fell $54 million to $1 billion, which impacted Prime's asset-based management fees, although wealth management revenue grew 11 per cent during the year.
Prime said it experienced a growth in joint venture licences and joint ventures with accounting firms during the year.
Prime declared a final dividend of 0.25 cents per share, making a full year dividend of 1 cent per share - down from 1.5 cents per share the previous year.
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