Tide turns for value investor, Perpetual: 1H profit doubles
Market conditions appear to complement Perpetual’s value style investment approach
Mentioned
KEY POINTS
- NPAT of $59.3m for the first half, up 113%
- Fully franked interim dividend of $1.12 per share, up 33%
- FY22 operating expense growth guidance of between 18% and 22% reaffirmed
Perpetual (ASX: PPT) opened higher today after declaring that underlying profit (EBITDA) after tax of $79.1m - up 54% on the previous period - was a beat against consensus ($75.6m) and in line with Bell Potter’s expectations ($79.5m).
Due to the full the contribution of Barrow Hanley Global Investors, strong relative investment performance, and higher average equity markets the diversified financial services company reported net profit after tax (NPAT) of $59.3m for the first half, up 113% on the previous period.
Due to continued growth in both Perpetual Corporate Trust and Perpetual Private first half operating revenue was up 37% on the previous period to $384.9m.
Perpetual declared a fully franked interim dividend of $1.12 per share, up 33% on the previous period.
The company also reaffirmed its FY22 operating expense growth guidance of between 18% and 22%.
Highlights
Solid performance was reported across all divisions with strategic organic and inorganic growth initiatives delivering continued momentum in underlying profit after tax for the period:
Perpetual Asset Management International up 205%.
Perpetual Asset Management Australia up 42%.
Perpetual Private up 56%.
Perpetual Corporate Trust up 19%.
Market conditions favourable
Commenting on the half year performance, Perpetual CEO and managing director, Mr Rob Adams, said:
“We are delivering solid earnings growth across our business, with all four of our operating divisions demonstrating positive momentum.
Pleasingly, we are making substantial progress in executing the Group’s strategic priorities with both organic and inorganic investments supporting solid growth in underlying profit and improved returns to shareholders.”
Adams also noted that current and expected market conditions appear to complement the value style investment approaches of Perpetual’s Australian equities team and the teams at Barrow Hanley.
Perpetual was trading 1.67% higher an hour out from the open this morning.
Note Perpetual's share price come back since February.
