Perpetual has revised its profit guidance for the 2008 financial year to between $130 million and $140 million, with its chairman Robert Savage saying this is premised on the All Ordinaries Index remaining at its current level.
In an announcement to the Australian Securities Exchange today, Savage said that any sizeable movements in the market between now and the end of the 2008 financial year would ultimately have a bearing on Perpetual’s performance.
He said that the global credit crisis and the decline in share markets continued to drive market volatility and negatively impact investor sentiment in the second half of the 2008 financial year.
Funds under management were down 17 per cent to $32.6 billion at April 30, while funds under advice were down 5 per cent to $8 billion.
The company’s ASX announcement said it had responded to the reduction in revenue with a review of its cost base, with the majority of savings from the review expected to flow through in the 2009 financial year.
