Equity Trustees reports solid half-year

Equity Trustees has reported solid results for the half-year to 31 December 2018, with some tempered revenue growth due to weaker than expected equity markets.

In a statement to the Australian Securities Exchange (ASX), Equity Trustees reported for the six months to 31 December last year a 16 per cent increase in net profit before tax of $16.2 million.

Net profit after tax was $10.88 million, which was also up 14.1 per cent on the prior corresponding period, while net profit after tax attributable to equity holders of the company was $11.2 million, up 17.3 per cent on the prior corresponding period. 

During the half-year, total revenue was $46.3 million, up 7.2 per cent of the prior corresponding period, which the directors attributed to organic growth in both Trustee Wealth Services and Corporate Trustee Services, and the contribution of the acquisition of OneVue RE Services, and Treasury Capital.

The group’s EBITDA stands at 40.2 per cent as compared to 37.3 per cent at 31 December last year, the its net profit before tax margin has increased to 34.9 per cent, compared to 32.3 per cent in the prior comparative period.

The group saw strong performance in superannuation trustee services following its appointment as trustee to the AON Master Fund in November 2017, while private client trustee services saw just $0.5 million growth on the prior comparative period.

“Domestic equity market performance has had a pronounced effect on private client trustee service revenue during the half-year, however these products have continued to exhibit some organic growth,” the firm said.

Revenues from other services, including estate management, estate planning and tax services, declined $0.8 million on the prio comparative period.

During the half-year period, a fully franked final dividend of 42 cents per share was paid to ordinary shareholders of the company in respect of the financial year ended 30 June 2018.

Going forward, the firm expects the growth in superannuation and favourable demographic trends would provide a supportive environment for the Corporate Trustee Services and Trustee Wealth Services.

The group also said its strategy was aligned to the broad themes and finding of the Royal Commission.