BTIM continues to feel effects of market dislocation
BT Investment Management (BTIM) has prepared the market for a fall in net profit after tax (NPAT) for the past financial year, which for BTIM ends on September 30.
The fall, of between 12 per cent and 17 per cent, will equate to reported NPAT of between $11.8 million and $12.5 million at the upper end. Last financial year (ending September 30) the group reported NPAT of $14.3 million.
BTIM, however, is promoting its cash NPAT result, which represents NPAT adjusted for non-cash items. The group said these non-cash items include the amortisation of upfront and ongoing equity grants minus the after-tax cash costs of the grants. In releasing its earnings expectations to the Australian Securities Exchange, the group said as these grants don’t form part of its underlying profitability, it considers cash NPAT a more suitable measure.
In regards to cash NPAT, BTIM is anticipating a fall of between 32 and 27 per cent for the financial year. The guidance puts BTIM’s cash NPAT at between $25.2 million and $27.2 million, compared to $40 million for the pro-forma cash NPAT determined for the two preceding years.
BTIM only began operating as an independent investment management business on October 20, 2007. As such, the pro-forma accounts were created by combining reported earnings from October 20, 2007, and September 30, 2008, as well as accounts for the period under prior ownership between October 1 and October 17.
BTIM chairman Brian Scullin said the decline in cash NPAT “reflects the weakness in asset markets (particularly equities) for much of the year, and although markets have improved over recent months, asset values have yet to fully recover previous declines”.
The group will announce its results on October 29.
Recommended for you
Adviser Ratings’ latest financial landscape report finds there is a demographic of advice practices achieving an average revenue of $5 million, with only 3 per cent of practices overall seeing a revenue decline.
The FAAA is calling for regulators to take a partnership approach with financial advisers regarding incoming legislation, rather than treating the industry as “guinea pigs”.
There have been strong numbers of returning advisers this year so far, according to Wealth Data, already surpassing the same period for 2024.
Less than one-third of Australian business owners have an ongoing advice relationship, according to NAB Private Wealth, highlighting an unmet opportunity for the advice profession to target.
