Perpetual shares slide 5% after first-half profit disappoints
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More news: Perpetual shares fell more than 5% after the fund manager posted a 65% decline in first-half net profit as a hefty impairment on its asset management business and one-off costs hit its bottom line.
Perpetual shares were down 5.6% to $22.02 at 2:35pm AEDT, having advanced more than 10% since the turn of the year.
Perpetual reports 65% drop in first-half profit as KKR termination costs weigh
The news: Fund manager Perpetual reported a 65% slide in first-half net profit to $12 million, impacted by a $25.5 million impairment on its asset management business, as well as one-off costs related to the termination of its proposed takeover by private equity group KKR.
The numbers: Underlying profit after tax rose 2% year on year to $100.5 million, aided by an 8% increase in assets under management (AUM) to $20.6 billion.
Perpetual will pay an interim dividend of 61 cents per share, down from 65 cents a year earlier.
The context: Perpetual CEO and managing director Bernard Reilly said the increase in AUM during the half-year period reflected positive equity market movements, investment outperformance and currency movements, which underpinned higher revenue.
What they said: "Despite some challenges, our three high-quality businesses have delivered solid growth during the half with opportunity for future organic growth across a number of segments," Reilly said.
"I am confident in our strategic direction and believe that focused execution of the business separation, our revised simplification program and the refreshed operating model for asset management will deliver value for shareholders," he said.
The source: ASX
