- Underlying Profit: A$206.1 million, up 26% year-over-year, beating the estimated A$186.7 million.
- Net Loss: A$472.2 million compared to a profit of A$59 million year-over-year.
- Operating Revenue: A$1.34 billion, an increase of 32% year-over-year.
- Total Expenses: A$1.05 billion, also up 32% year-over-year.
- Total Assets Under Management: A$215.0 billion, a 1.4% increase year-over-year.
- Final Dividend Per Share: A$0.53, down from A$0.65 year-over-year.
- Return on Equity on UPAT: 10%, slightly higher than the previous year’s 9.9%, and above the estimated 9.21%.
- Leadership Changes: Chairman Tony D’Aloisio intends to retire; Gregory Cooper will assume the role of Chairman. Non-Executive Directors Ian Hammond and Nancy Fox are also retiring.
- Tax Engagement: Ongoing discussions with tax authorities regarding the tax outcomes of the KKR deal for both Perpetual and its shareholders.
- Transition Services Agreement: Post-KKR deal, expected to cover a significant portion of stranded costs over 18 months.
- Expense Growth Guidance for FY25: Expected to be between 2-4%.
- Simplification Program: Aimed to deliver annual cost reductions of between A$25 million and A$35 million, before tax, over the next two years.
- KKR Transaction Net Cash Proceeds: Estimated to range from A$8.38 to A$9.82 per share, based on several assumptions and external adviser opinions.
- Analyst Ratings: 6 buys, 4 holds, 0 sells.
Perpetual Ltd on Smartkarma
Analyst coverage of Perpetual Ltd on Smartkarma reveals a bullish sentiment from David Blennerhassett. In a recent report titled “Perpetual (PPT AU): Shareholders Divided Over Carve Out,” Blennerhassett suggests that the company’s potential re-rating as a debt-free, pure-play asset manager could lead to an undervaluation. Despite a recent sell-down, the analyst remains optimistic about Perpetual’s prospects, indicating a buying opportunity.
The report highlights Perpetual’s rejection of a significant proposal from Washington H. Soul Pattinson and subsequent move to carve out certain business segments to KKR for A$2.175bn. However, uncertainties around the net proceeds have led to share price volatility. With shareholders divided over this strategic shift, the analyst’s bullish stance on Perpetual’s future performance underscores confidence in the company’s long-term value potential.
A look at Perpetual Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Perpetual Ltd, a financial services company offering wealth management and corporate trust services, demonstrates a positive long-term outlook according to the Smartkarma Smart Scores analysis. With high scores of 4 in both Value and Dividend categories, Perpetual Ltd is positioned well in terms of its value and dividend prospects. This indicates strong fundamentals and potential for attractive returns for investors.
However, the company scores lower in Growth, Resilience, and Momentum with scores of 2, 3, and 3 respectively. While growth opportunities may be moderate, Perpetual Ltd shows resilience and stability in its operations. The momentum score suggests a steady trajectory but not overly dynamic. Overall, the company’s solid Value and Dividend scores provide a sound foundation for long-term investors seeking stability and income generation in their portfolios.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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