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Equity Trustees reports robust performance with significant revenue and profit growth
Invest
Equity Trustees reports robust performance with significant revenue and profit growth
Equity Trustees has witnessed a noteworthy advancement in its financial standing, marked by substantial increases in revenue and funds under management, administration, and supervision (FUMAS), according to its latest financial report for the half-year ending December 31, 2023.
Equity Trustees reports robust performance with significant revenue and profit growth
Equity Trustees has witnessed a noteworthy advancement in its financial standing, marked by substantial increases in revenue and funds under management, administration, and supervision (FUMAS), according to its latest financial report for the half-year ending December 31, 2023.
The company's revenue reached $83.9 million, marking an 8.1% increment from the previous half and a 37.3% rise from the prior corresponding period (PCP). FUMAS saw an 18.0% increase from PCP, totaling $183.5 billion.
The underlying net profit for the company was reported at $17.9 million, showing a 24.8% rise on PCP, while the statutory net profit stood at $12.6 million, factoring in expenses related to the integration of Australian Executor Trustees (AET), technology transformation, and the impacts of exiting the UK/Ireland operations.
Equity Trustees declared a fully franked interim dividend of 51 cents per share, witnessing an increase from the previous distributions.
Carol Schwartz AO, Board Chair, expressed her views on the company’s progress stating, "Equity Trustees continues to grow, becoming a stronger and more diversified business following our acquisition of AET and several years of significant investment in technology and people." She highlighted the role of empowered employees and new technology platforms in driving future growth and solidifying the company's leadership in trustee services in Australia.
Mick O’Brien, Managing Director, echoed the positive sentiment, mentioning, "The year is off to an encouraging start, with strong uplifts in FUMAS and revenue across all our business lines." He detailed the successful integration of AET and the enhancement of the business's structure and technological platforms which are expected to bolster growth.
Further insights were provided into the company's expense management, showing a rise attributed to inflationary pressures and ongoing investments in personnel and technology. However, a decrease in expense growth is anticipated following the completion of major integration and technology developments, along with the stabilization of employment vacancy rates.
The report also showcases the performance of specific sectors within the company. The Corporate & Superannuation Trustee Services (CSTS) reported a 14.2% revenue increase on PCP to $34.5 million, benefiting from organic growth and positive market contributions. The Trustee & Wealth Services (TWS) segment witnessed a revenue boost of 60.6% on PCP to $49.5 million, driven by organic growth and contributions from the AET acquisition.
O’Brien remained optimistic about the outlook, emphasizing a strong operating cash flow and a robust balance sheet that positions the company well for continued growth and a more sustainable future. He concluded, "The investments we have made provide us with a strong competitive foundation and position us well for continued growth and a stronger more sustainable future."
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