- Perpetual’s underlying profit for FY 2024 was A$206.1 million, up 26% from last year, exceeding estimates of A$186.7 million.
- The company reported a net loss of A$472.2 million, compared to a profit of A$59 million last year.
- Operating revenue increased by 32% year-on-year to A$1.34 billion.
- Total expenses also grew by 32% year-on-year, reaching A$1.05 billion.
- Total assets under management rose by 1.4% to A$215.0 billion.
- Final dividend per share was A$0.53 versus A$0.65 last year.
- Return on equity on underlying profit after tax (UPAT) increased to 10% from 9.9% last year, beating the estimate of 9.21%.
- Chairman Tony D’Aloisio intends to retire, and Gregory Cooper will take over as Chairman.
- Non-Executive Directors Ian Hammond and Nancy Fox are also retiring.
- The company is in ongoing discussions with tax authorities regarding the tax outcomes of the KKR deal.
- A transition services agreement with KKR is expected to cover a significant portion of stranded costs for 18 months post-transaction completion.
- Expense growth for the first half of FY 2025 is projected to be between 2-4%.
- A simplification program is underway, targeting cost reductions of A$25 million to A$35 million per year over the next two years, before tax.
- Net cash proceeds from the KKR transaction are estimated to be between A$8.38 and A$9.82 per share, based on several assumptions and external advisers’ opinions.
- Analyst recommendations include 6 “buy”, 4 “hold”, and 0 “sell” ratings.
Perpetual Ltd on Smartkarma
Analyst coverage of Perpetual Ltd on Smartkarma delves into the recent developments surrounding the company’s potential carve out of its corporate trust and wealth management businesses. David Blennerhassett, a prominent analyst, shared insights on the matter in his report titled “Perpetual (PPT AU): Shareholders Divided Over Carve Out.” Blennerhassett’s bullish sentiment suggests that the sell-down of Perpetual may have been overdone, presenting a potential buying opportunity as the company moves towards becoming a debt-free, pure play asset manager.
The report highlights Perpetual’s rejection of a previous proposal and its current Scheme to carve out certain businesses to KKR for A$2.175bn. However, uncertainties surrounding the net proceeds have impacted the stock’s performance. With shareholders divided over the strategic move, the analysis on Smartkarma provides valuable insights for investors navigating Perpetual Ltd‘s evolving landscape.
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, is positioned favorably for long-term growth and stability according to Smartkarma Smart Scores. With strong scores in Value and Dividend at 4 each, Perpetual Ltd demonstrates solid fundamentals and a commitment to returning value to investors. However, its Growth score of 2 indicates potential room for improvement in expanding its operations and enhancing market presence. The company’s Resilience and Momentum scores at 3 each suggest a moderate level of stability and growth prospects. Overall, Perpetual Ltd appears well-positioned to deliver value and dividends while also having opportunities to focus on growth in the future.
Perpetual Limited, known for its wealth management and corporate trust services, receives encouraging Smartkarma Smart Scores across various key factors. The company’s strong Value and Dividend scores of 4 signify a solid foundation and consistent returns for investors. While its Growth score of 2 points to areas for potential development and expansion, Perpetual Ltd showcases resilience and momentum with scores of 3 each. As a trusted provider of funds management, trustee services, financial planning, and more, Perpetual Ltd stands out for its commitment to delivering value and stability in the financial services sector, with room for future growth opportunities.
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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