Perpetual increases dividends – invests for growth

Geoff Lloyd


Perpetual Limited announced its annual results on Thursday 25 August with strong dividend growth during a volatile period reflecting the diversity of the company’s revenue streams. Here’s a look at some of the highlights.

Increased dividends good news for shareholders

Perpetual Limited (Perpetual) has delivered solid results for the year ended 30 June 2016 with statutory net profit after tax (NPAT) of $132 million, up 8% on the same period last year, and underlying profit after tax (UPAT) of $128.2 million, down 4% on FY15.

Perpetual will pay eligible shareholders a fully franked final dividend of 130 cents per share, taking fully franked dividends for the year to 255 cents per share, up 6% on FY15.

Perpetual’s Chief Executive Officer and Managing Director Geoff Lloyd said, “We have achieved a solid result in challenging conditions while investing in the business. This is testament to the disciplined execution of our strategy, the diversity of our revenue, and our commitment to growing the business for the future.

“We are pleased with the outcome for our people, clients and shareholders as this year we have delivered our highest profit, dividend, client advocacy score and employee engagement levels in five years,” Geoff added.


A solid result across business lines

Perpetual Investments delivered profit before tax of $118.1 million, offsetting equity market volatility with good cost control and long-term outperformance of the funds.

Commenting on the result Geoff said, “The diversity of our strategies across our multi asset, global equities, and credit and fixed income capabilities has allowed us to offer more relevant solutions to our clients and maintain revenue margins.”


Investing in the growth of Perpetual Private

Perpetual Private’s profit before tax was $34.2 million. It has now delivered six consecutive halves of positive flows and net new client growth. It also generated strong investment performance from the $12.7 billion it manages for clients.

“Over the past year we continued to invest in the future growth of Perpetual Private,” said Lloyd. “We bought medical education and advice business The Private Practice/Fintuition in the first half. In the second half our professional services business Fordham grew up the eastern seaboard, adding six new partners. It’s all aligned with our focused client segment strategy to deliver long-term growth,” Geoff said.


Perpetual Corporate Trust builds on market-leading position

Perpetual Corporate Trust’s profit before tax was $34.1 million, which was 9% higher than FY15, reflecting growth in the securitisation market and inbound capital flows.

“We have seen good growth in Perpetual Corporate Trust which has built on its market-leading position in securitisation to broaden our range and depth of offers.

““The team has demonstrated Perpetual’s credentials in data and analytics which have provided a platform to diversify into new and growing markets.

“In Managed Funds, we have benefitted from inbound capital flows and the continuing attractiveness of property and infrastructure investments in Australia,” Geoff said.


Lead & Grow strategy gains momentum

Launched in August 2015, Perpetual’s Lead & Grow strategy is bringing all business units together with a shared vision to become Australia’s largest and most trusted independent wealth manager. Results are measured according to outcomes for shareholders, clients and people.

“Early momentum in new strategies is critical, and we are pleased with progress on our Lead & Grow strategy, one year into this multi-year journey,” Geoff said.