Insignia Financial narrows HY loss amid takeover battle
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The news: Wealth manager Insignia Financial narrowed its first-half statutory loss from $50 million to $17 million, attributing the improved performance to its ongoing cost reduction program.
The company also noted that following its provision of limited due diligence to takeover suitors CC Capital, Bain Capital and Brookfield Capital Partners, it has not currently entered into any further agreements with these potential buyers.
The numbers: Insignia reported underlying net profit after tax of $124 million, up 30% compared to the prior corresponding period.
Net revenue grew 1.5% year on year to $705.8 million, while expenses decreased 6.9% to $482 million.
Average funds under management and administration (FUMA) increased 8.6% to $320 billion. FUMA at the end of the period totalled $326.8 billion, up 8.7% year on year.
Insignia shares edged up 0.2% to $4.63 at market open.
The context: Insignia said its increase in underlying profit was driven by market growth and a continued reduction in its operating expenses.
During the six-month period, the company progressed plans to simplify its business, including introducing a new operating structure and executive team and launching its strategy to become "Australia's leading and most efficient wealth management company by 2030".
The source: ASX announcement
