Perpetual shares lower on FY25 net loss
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More news: Shares in Perpetual edged 0.18% lower to $22.10 by 11:37am AEST after the fund manager posted a $58.2 million net loss for FY25.
During the investor call, Perpetual chief financial officer Suzanne Evans noted that significant items would likely be non-cash items going forward.
What they said: “So whether that's any of those sort of [amortisation] on intangibles, to the extent that we've got any other non cash items. So for example, if there's revaluations on financial assets that are held for hedging purposes but don't perfectly match the liability, I would still expect those to be coming through,” Evans said.
“But I think with less transactions, hopefully, we have less of these one off items coming below the line.”
Perpetual's net loss improves as AUM lifts 5% for FY25
The news: Perpetual Group has posted a net loss of $58.2 million for FY25, an improvement on its $472.2 million net loss in FY24.
The numbers: Perpetual said the loss was due to non-cash impairments of $134.6 million along with costs associated with strategic initiatives and the terminated KKR transaction. KKR was set to acquire Perpetual’s corporate trust and wealth management businesses before the transaction fell through in February.
Included in non-cash impairments were J O Hambro business that totalled $134.6 million driven by the carrying value of goodwill and contracts. The boutique also incurred net outflows of $6.6 billion.
Perpetual said work was underway to revitalise J O Hambro with its return to a growth trajectory a key priority for CEO Bernard Reilly in FY26.
The company also announced that its assets under management rose 5% to $226.8 billion driven by an improved equity market and movements in foreign exchange rates. However, it was partially offset by net outflows of $16.2 billion.
The board also declared a final dividend of 54 cents, up front 53 cents during the previous year.
The company also announced a refresh in its group strategy which has three pillars of simplifying, delivering operational excellence and investing for growth.
What they said: “...since February, we have continued to progress the internal separation of our three businesses. While this work began in preparation for the transaction with KKR, which ultimately did not proceed, it now aligns with our new operating model supporting each of our businesses to better deliver growth by operating as separate, more autonomous divisions," Reilly said.
“We have made substantial progress in executing on our Simplification Program to deliver $70-$80 million in annualised cost savings, already achieving over half of the program and in excess of our target of $30 million for the year. We have also reduced our gross debt, while continuing to invest with measure across each division.”
The source: ASX
