DKN announces write downs; decreased inflows
DKN has announced a $21 million write down to the carrying value of goodwill in its accounts in a statement to the Australian Securities Exchange, which the company said would have no impact on a proposed acquisition by IOOF.
Together with an underlying net profit after tax DKN anticipated a full year loss of $14 million, subject to audit.
The total funds under administration in its platform and product solutions divisions was up by eight per cent over the 12 months from 30 June 2010 to $8.02 billion, although positive inflows saw a 40 per cent drop compared to the previous year to $300 million.
“These figures reflect lower investor confidence, uncertainty arising from impending regulatory changes and the loss of one medium-sized wealth management practice from the network,” DKN stated.
DKN also announced that investments were made in two additional practices through its equity partners division, while seven new associates were added to its Lonsdale dealer group network, bringing the total to 117 practices.
Five new practice associates contracted to purchase solutions from Lonsdale and six existing practice solutions associates contracted to purchase additional solutions throughout the year, DKN stated.
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