Treasury Group reports good results and positive outlook
Treasury Group has reported a consolidated profit after tax of $11.68 million for the last financial year, up 136 per cent, while normalised net profit after tax was $10.19 million, up 35.56 per cent.
In a statement to the Australian Securities Exchange, managing director Mark Burgess and chief financial officer Joseph Ferragina stated that the results reflected a return to normal market conditions, net new flows inflows and a focus on cost control.
Funds under management (FUM) at 30 June, 2010, amounted to $14.71 billion, an increase of 34.55 per cent. Treasury Group noted that it had experienced net new funds flows for five consecutive years, including consistent net new asset growth during the recent market downturn.
It stated that while its funds mix had moved to a higher institutional weighting as retail investors remained cautious, the net new funds flow was an “outstanding achievement over this time”. Treasury Group stated that it would focus on working with its boutique partners to grow in the retail market, pointing to its recent development of a retail distribution service.
Growth over the last year also included three new acquisitions, expanding skills in offshore platforms for global clients and skills investment in Investors Mutual Limited, which it stated would allow for future growth and succession planning.
This was all achieved while maintaining a strong balance sheet and a conservative investment position in volatile investment markets, Treasury Group stated.
Treasury Group’s overall sentiment was positive, both looking back and forward.
Treasury Group chairman Mike Fitzpatrick said the company’s balance sheet remained strong with no debt, adding that growth was achieved through acquisitions as well as organic initiatives and developments.
“The board is committed to seeing further growth both domestically and offshore,” he said.
Treasury Group declared a final dividend of 14 cents per share to be paid on 24 September, 2010, fully franked, which brings the total dividend paid for the year to 26 cents per share.
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