Prime profits plunge on planning revenue falls
Prime Financial Group has posted a 55 per cent fall in net profit after tax for the 2009 full year, partly as a result of a 30 per cent fall in financial planning recurring revenue and new business.
The diversified wealth manager and dealer group posted net profit after tax of $2.74 million for the 12 months to June 30 this year, down from a net profit of $6.14 million for the 2008 full year.
Its net profit after tax for 2009 was $1.08 million after a non-cash capital loss of $1.66 million on the sale of its stake in funds management business Armytage Private.
The group experienced a 42 per cent fall in earnings before interest and tax to $4.24 million in 2009, compared to $7.41 million for the previous full year.
Managing director Simon Madder described 2009 as a setback amid extraordinarily difficult stock market and economic circumstances.
“In this environment Prime’s business model proved resilient, operations were consolidated and non-core businesses were promptly divested.”
He said financial planning's contribution to second half 2009 earnings was more significant than in the first half.
“Financial planning and new business and recurring income in both the retail and wholesale financial planning operations have steadily improved in line with stock markets and client confidence."
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