IOOF has turned in a strong interim result, announcing a 14 per cent increase in underlying net profit after tax pre-amortisation of $58 million to the end of December, with its chief executive, Chris Kelaher, pointing to the quality of its advisers as being a factor.
The result has seen the IOOF board declare a 15 per cent increase in its interim dividend of 22.5 cents per ordinary share, with Kelaher signaling the company may again be looking towards mergers and acquisitions.
Kelaher described the result for the period ended 31 December as “strong” with all key indicators of growth showing continual improvement.
“We have seen a 12 per cent increase in revenue and our total net flows are positive for the second consecutive half,” he said.
The announcement to the Australian Securities Exchange (ASX) said that IOOF’s funds under management administration and advice grew by 10 per cent to $94.1 billion over the period, with the company’s flagship products continuing “their impressive organic growth trajectory”.
It said net flows into the platforms had improved 75 per cent to $622 million for the period, with total platform net flows being $412 million and investment management net flows of $1.7 billion.
Kelaher attributed the outcome to IOOF’s integrated service offering and “our partnership with quality advisers and strong brand awareness”.
Looking at prospects for 2013/14, Kelaher said that with rising markets and interest rates at historically low levels, investors were re-entering the share market with confidence.
As well, he pointed to IOOF being on a further acquisition path, saying that with a strong balance sheet and unparalleled record in mergers, acquisitions and business integration, the experienced IOOF management team “continues to assess opportunities across each of our four operating segments”.
