Perpetual forecasts FY profit to double
May 27, 2010
Perpetual Limited (PPT) expects FY10 net profit after tax to be in the range of $85 million to $95 million, more than double last year’s result. The funds manager said the prior year’s result was adversely affected by the steep market falls.
Perpetual said the forecast result assumed no impairments within the Exact Market Cash Fund or other significant items.
In a letter to shareholders chairman, Robert Savage, said subject to there being no dramatic deterioration in financial markets and business conditions over the remainder of the financial year the company expects its second half year underlying profit to be broadly in line with its first half results.
“We expect the underlying profit after tax (UPAT) for the 12 months to the end of June 2010 to be in the range of $65 million to $75 million,” Mr Savage said.
”This includes the impact of acquisitions and continued investment in our businesses.”
UPAT excludes gains or losses on the sale of investments; and gains from the Exact Market Cash Fund generated from improved credit markets.
However, Mr Savage did point out that the nature of the business means it is leveraged to the fortunes of financial markets.
As at 30 April 2010 Perpetual’s funds under management were $29 billion, up 11% on 30 June 2009, while funds under advice, including increases from acquisitions, were up 28% to $8.7 billion in the same period.
”Given the sensitivity of our funds under management and advice to market movements the downturn in May will have an impact,” Mr Savage said.
As at 30 April 2010 securitised funds under administration were down 11% to $215 billion compared to 30 June 2009.
At 1453 AEST, Perpetual shares were up 25c to $30.08.
Perpetual said the forecast result assumed no impairments within the Exact Market Cash Fund or other significant items.
In a letter to shareholders chairman, Robert Savage, said subject to there being no dramatic deterioration in financial markets and business conditions over the remainder of the financial year the company expects its second half year underlying profit to be broadly in line with its first half results.
“We expect the underlying profit after tax (UPAT) for the 12 months to the end of June 2010 to be in the range of $65 million to $75 million,” Mr Savage said.
”This includes the impact of acquisitions and continued investment in our businesses.”
UPAT excludes gains or losses on the sale of investments; and gains from the Exact Market Cash Fund generated from improved credit markets.
However, Mr Savage did point out that the nature of the business means it is leveraged to the fortunes of financial markets.
As at 30 April 2010 Perpetual’s funds under management were $29 billion, up 11% on 30 June 2009, while funds under advice, including increases from acquisitions, were up 28% to $8.7 billion in the same period.
”Given the sensitivity of our funds under management and advice to market movements the downturn in May will have an impact,” Mr Savage said.
As at 30 April 2010 securitised funds under administration were down 11% to $215 billion compared to 30 June 2009.
At 1453 AEST, Perpetual shares were up 25c to $30.08.
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