Perpetual Trustees is the next financial services company off the reporting season blocks to herald good news for investors, with strong growth in funds under management during 2004-05 helping the funds manager to a 32 per cent increase in annual net profit.
Buoyant investment markets helped the company posted a net profit of $119.5 million for the year, compared to $90.4 million in 2003-04, on revenue of $432.74 million, up 36 per cent on the previous 12 months. Operating profit increased by 27 per cent to a record $111.60 million.
Funds in its asset management business grew by 23 per cent to $26.7 billion during 2004-05 and by 11 per cent to $7.30 billion in its Perpetual Private Clients division. Funds under administration in its corporate trust grew by 28 per cent to $144.30 billion.
Managing director David Deverall said the increases were “underpinned by strong markets, performance and healthy inflows across all our divisions”.
A special dividend of $1.00 per share was declared, as well as a final dividend of $1.30, bringing the total payout for the year to $3.60, compared to $4.00 the previous year.
Perpetual also announced the long-anticipated sale of ASX Perpetual Registrars Ltd (APRL) to private equity firm Pacific Equity Partners , which will boost its profit for 2005-/06 by about $13.5 million.
Deverall said APRL, which was sold to Pacific Equity Partners for $132 million, had been a “good investment for Perpetual, although not a core business.
“The sale of the business is in line with our strategy to develop growth opportunities for our core businesses,” he said.
Perpetual also announced yesterday that director Robert Savage will replace Perpetual chairman and director Charles Curran in October.
Perpetual shares closed 90 cents higher at $66.42 yesterday.
