Magellan posts results
Funds manager Magellan Financial Group has announced its end of year report, with net profit after tax of $6.2 million, an increase of 147 per cent over the previous year.
In a statement released by the group, the reported full year profit was not reflective of the underlying results as it included a non-cash accounting adjustment that increased the reported profit after tax by $26.6 million, a write off of goodwill relating to the internalisation of the management services agreement between NPH Funds and Magellan that reduced the reported profit after tax by $18.6 million, and another non-cash accounting adjustment that increased the reported profit after tax by $2.2 million.
The group reported unrealised mark to market losses after tax of approximately $2.4 million on investments held by Magellan and a consolidated unit trust.
Underlying operating results for 2008 stood at a loss after tax of approximately $1.6 million, while total revenue from ordinary activities went down 7.7 per cent to $6.529 million.
The group’s directors stated that 2008 was a particularly challenging year for funds management, both in terms of absolute investment returns and funds flow, but are “comfortable that Magellan is well placed to attract funds under management in 2009 and beyond”.
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