Equity Trustees confirms acquisition as it launches growth initiative
In their latest financial results, Equity Trustees (EQT) has confirmed the acquisition of the OAMPS superannuation fund and a new superannuation growth initiative known as simpleWrap.
EQT Managing Director Robin Burns has also confirmed the acquisition of an advisory business specialising in the aged care sector.
“We are excited about the take-on of the business, known as Lifetime Planning and Tender Living Care,” Burns said.
“We will continue to assess appropriate acquisitions and new business opportunities, with the objective that they are earnings accretive in the near term,” he said.
Burns said the acquisition was fully funded from internal cash resources.
According to the EQT update, net profit was up 2.3 per cent to $8.2 million, while earnings rose from 96.60 cents to 97.01 cents per share.
EQT Chairman Tony Killen said the company was pleased to exceed last year’s net profit despite continuing market unpredictability, particularly during the June quarter.
“As a result of continuing uncertainty and the use of cash for acquisitions, the EQT Board has announced its intention to reduce the fully franked final dividend from 60 to 50 cents per share,” Killen said.
Killen said that while the full year payment would still represent a payout ratio of 103 per cent, the board’s expressed policy was to pay in the range of 70 to 90 per cent.
This is to support the continuing business needs of EQT, including its desire to expand its acquisitions, according to the release.
EQT will formally confirm the 2011 audited results in an announcement on 25 August.
Recommended for you
This week has marked only the second week of overall net losses since the start of the financial year, with M&A among the factors driving gains for licensees.
With North reporting its fastest six months of AUM growth in managed accounts, AMP says the vehicles have become a “foundational element of financial advice” for their efficiency benefits.
High-net-worth advice firm Multiforte Financial Services is to merge with Sydney advice firm Lorica Partners as it proactively seeks succession for its staff and clients.
Shaw and Partners has reached $3 billion in funds under management on its separately managed account, and the firm is eager to expand the offering.
