WHK grows profit by 24 per cent
The WHK Group has grown its net profit for the 2005-06 financial year by 24 per cent to $22.4 million, up from $18.2 million last year, on the back of strong revenue flows from both its business services and financial services arms.
Overall the company experienced a rise in revenue of 25 per cent delivering an operating income figure of $251.7 million, compared to $201.5 million achieved during the previous financial year.
The firm’s financial services activities made up $61.85 million of the total, which also represented a 24 per cent increase from the 2005 revenue of $49.81 million.
The key driver of the increase was financial planning services, with recurring fee-for-service revenue jumping from $31.57 million to $41.41 million, a rise of 31 per cent.
These figures were largely associated with the growth in funds under advice of the business arm from $5.65 billion in the previous corresponding period to $6.72 billion for 2005-06.
Funds invested in the group’s wrap platforms experienced a boost of $396 million, ending the year on $1.76 billion.
The risk insurance and finance broking activities of WHK also performed well throughout the year.
Risk insurance revenue was $3.63 million, representing an increase of 26 per cent.
New loans of $520 million were placed with the finance broking arm resulting in total loans under advice at year-end of $904 million.
This activity helped drive the finance broking revenue to a new level of $3.54 million, a rise of 74 per cent.
While the development in these two business arms was outstanding, WHK management does not expect this to be sustainable and is predicting slower growth in the coming years.
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