Perpetual Limited has announced strong results for the 2013/14 FY.

Perpetual Limited (Perpetual) has delivered strong results for the 12 months to 30 June 2014 with underlying profit after tax (UPAT) of $104.1 million, up 37%, and statutory net profit after tax (NPAT) of $81.6 million, up 34% on FY13.

The Board has determined to pay a fully franked final dividend of 95 cents per share, taking FY14 fully franked dividend to 175 cents per share, up 35% on last year. Perpetual’s Chief Executive Officer and Managing Director, Geoff Lloyd, said 2014 was a strong year for Perpetual, its clients and shareholders.

“Our Transformation 2015 (T15) strategy to simplify, refocus and grow Perpetual is delivering strong operational and financial results, and this is underpinned by our ongoing investment outperformance,” Mr Lloyd said.

“We have now completed the first two phases of T15 on plan, with annualised savings of $50 million pre-tax to date. Since launching the strategy in 2012, NPAT has increased threefold and UPAT is up 59%.

“Our attention is now on growth,” he said

A key growth initiative was the acquisition of The Trust Company, which completed in December 2013.

“The Trust Company integration is on track,” Mr Lloyd said, “Expected pre-tax annualised savings have increased from $15 million to $18-20 million, and positive client feedback is reflected in high retention rates.“Today we are also announcing a new growth initiative – the launch of the Perpetual Global Share Fund to meet increasing demand from clients for global equities exposure.

“Global equities is a natural and logical extension of our highly regarded and successfulAustralian equities investment business and our launch follows an incubation period of three and a half years in which the fund has outperformed its benchmark significantly,” Mr Lloyd said.

“We look forward to offering clients access to global equities through Perpetual’s proven, value-oriented investment philosophy and process,” Mr Lloyd said.

Business Unit Overview

Perpetual Investments

In FY14, Perpetual Investments delivered profit before tax of $113.6 million, up 30% on FY13, driven by equity market gains, a return to positive net inflows and a continued focus on expenses. The business improved its profit margin on revenues from 45% in FY13 to 51% in FY14.

“We are pleased to report a full year of positive net inflows, particularly given the continued outstanding performance of our asset management team now supported by a reinvigorated sales and distribution strategy,” Mr Lloyd said.

“It was rewarding to be named Fund Manager of the Year again in 2014 and it’s an exciting time as we expand into global equities,” he said.

Perpetual Private

Perpetual Private’s profit before tax increased by 135% to $21.6 million and reflects a solid performance from the core business and the acquisition of The Trust Company.

Total revenue of $143.8 million was up 24% on FY13 and the cost-to-income ratio improved from 92% in FY13 to 85% in FY14.

“This is a strong result for Perpetual Private which now has a scalable business with strong foundations for growth after a number of years of significant investment and organisational change.

“With our trusted independent brand, high levels of client advocacy and awarded range of advisory services, Perpetual Private is well placed to meet the needs of high net worth individuals and families seeking professional, quality advice built around client needs,” Mr Lloyd said.

Perpetual Corporate Trust

Perpetual Corporate Trust’s profit before tax was $25.7 million, a 40% increase on the previous year. This reflects improved securitisation markets, notably the higher-margin RMBS non-bank and asset backed securities market. The Trust Company acquisition has diversified and strengthened the business.

“During the year Perpetual Corporate Trust experienced good deal flow, with 36 new transactions in 2H14, including a significant uplift through The Trust Company acquisition,” Mr Lloyd said.Outlook

“Our T15 strategy is now firmly in the growth phase and has good momentum. We will continue to examine both organic and inorganic opportunities with discipline.

“With our deep fiduciary heritage, trusted independent brand and solid investment track record, we look forward to continue helping protect and grow the investments and retirement savings of our clients,” Mr Lloyd said.

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Connie McKeage

Investment platform and fund services provider OneVue has announced the completion of the first $6.75 million of an $8 million capital raising program.

OneVue chief executive Connie Mckeage said the aim of the capital raising was to fund the business’ expansion post the acquisition of Computershare Fund Services and to create a stronger balance sheet for the group.

“The major investors in the $6.75 million placement are Perpetual Limited and Thorney Investments,” Mckeage said.

“The remaining $1.25 million has been set aside for existing shareholders and OneVue staff, including those new OneVue employees that joined the business as part of the Computershare Fund Services transaction in September.

“We are fortunate to have enormous support from both staff and existing shareholders therefore the balance has already been spoken for.”

Mckeage said the business had interest that far exceeded OneVue’s capital raising target of $8 million.

“OneVue is an SMSF sector participant,” Mckeage said.

“We access the SMSF market via key distribution avenues being intermediaries such as planners and accountants, and third party brands that market direct to consumer. The soon to be launched ASX Managed Funds Service, also known as AQUA II, will provide a third avenue.

“The high calibre of new investors such as Perpetual Limited and Thorney Investments highlights that our belief in OneVue being a market transformational business is increasingly gaining momentum across the financial services industry.

“The key to any business is people. People drive financial outcomes not the other way around.

“We were profitable last year and don’t intend to let go of that bottom line.”

OneVue chair Gail Pemberton said the $6.75 million placement which required shareholder approval received unanimous support.

“The capital raising allows us to focus on further expansion and innovation, and even greater outcomes for existing and prospective clients and partners,” she said.

Currently OneVue has more than 200 advisers servicing clients through its investment platform packages and the business administers over $130 billion through its funds services business that caters to 25 of Australia’s leading financial services organisations.

Mckeage added that OneVue was moving towards an ASX listing in the second quarter of 2014 and that no further capital raising would be required before the initial public offering.

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