Perpetual Trustees: Results Update and CEO Succession
20 May 2003
Perpetual Trustees Australia Limited Chairman, Mr Charles Curran, said in the May Letter to Shareholders released today that the Board expected the full year operating result to be in excess of the strong 2002 full year result.
The Board has reconfirmed its intention to pay special dividends of 50 cents a share fully franked in June 2003 and June 2004.
The Chairman also announced that the Managing Director, Graham Bradley, will be leaving the company after eight years in the position.
Mr Curran said the Board had agreed that Graham Bradley would continue as Managing Director until a new chief executive was appointed.
"Over recent months, the Board and management have reviewed several specific organic and acquisition growth opportunities and have identified ways to streamline operations to improve service and cost efficiency," Mr Curran said.
Under Graham Bradley's contract, there was a provision for review in 2003. The Board's review considered the current phase of the investment cycle, the commencement of a new growth phase for the company and the continuity of leadership required over the next five years.
Mr Curran said in line with the company's succession plan, the Board and Graham Bradley thought the timing was right for the appointment of a new chief executive officer to lead Perpetual Trustees through a new growth phase over the next five years.
"The Perpetual group continues to be in a very sound financial position, with a strong balance sheet, significant cash reserves, and ample financial capacity to take advantage of growth opportunities," Mr Curran said.
"We have attractive organic growth prospects; we also seek suitable acquisitions. In the current market conditions, attractively priced opportunities are more likely to be available than was the case over the past few years.
"Together with the long-term attractiveness of the wealth management industry, these growth and efficiency opportunities provide a basis for a new growth phase for Perpetual over the next five years."
Mr Curran said Graham Bradley had made a significant contribution to the growth and development of Perpetual Trustees as the leading independent fund manager in Australia.
During his time as Managing Director, Graham Bradley led a team which increased funds under management from $2.4 billion in 1995 to more than $17 billion currently, with operating profit after tax increasing from $11 million in 1995 to $58.7 million in the year to June 2002, he said.
Mr Curran said: "We value the significant contribution made by Graham Bradley and wish him well in his future endeavours.
"The new chief executive officer will be expected to lead the Perpetual Trustees team into a stage of further expansion, capitalising upon our strong position as a leading fund manager and opportunities that may arise in the future."