Guardian Trust boosts ASX-listed Trust Co's annual earnings
Trust Co, the ASX-listed trustee, boosted net profit 12 percent after its $NZ42 million acquisition of New Zealand Guardian Trust paid dividends in its first year.
Trust Co, the ASX-listed trustee, boosted net profit 12 percent after its $NZ42 million acquisition of New Zealand Guardian Trust paid dividends in its first year.
The Melbourne-based company made a net profit of $A12.6 million, or 38.5 Australian cents per share, in the 12 months ended Feb. 29, up from $A11.3 million, or 34.6 cents per share, a year earlier.
Guardian Trust contributed $A4.2 million, or a third, of the net profit figure, and $A6.2 million to the group’s $18.5 million earnings before interest, tax, depreciation and amortisation.
The New Zealand unit reported annual revenue of $27.9 million out of the Trust Co’s total sales of $A84.9 million, slightly ahead of the $A27.4 million forecast when the deal was completed last year.
“The strong contribution from our New Zealand business and the emergence of cross border capital market opportunities emphasises the value of our regional presence,” chief executive John Atkin said in a statement.
“In FY13 we are expecting to see a significant improvement in the underlying performance of our business as corporate client services continues to take advantage of higher levels of activity or transaction fees that have been experienced recently,” he said.
Trust Co completed its purchase of the New Zealand firm in March last year, paying less than five times Guardian Trust’s forecast for EBITDA earnings from Suncorp Group. The Australian insurer took a $NZ40 million hit on the sale, writing down goodwill attached to the business.
The Australian trustee’s board declared a final dividend of 18 Australian cents per share, taking the annual pay-out to 35 cents.
The company flagged it will expects to offer a share purchase plan in the first half of the 2013 financial year in conjunction with the dividend.
The stock rose 2.4 percent to $A5.18 on the ASX, valuing the company at $A172.6 million
Paul McBeth
Tue, 17 Apr 2012
Tue, 17 Apr 2012
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Guardian Trust boosts ASX-listed Trust Co's annual earnings
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