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Half-yearly Results to December 2001
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Half-yearly Results to December 2001
Report to Shareholders
Charles Curran AO, Chairman
Graham Bradley, Managing Director
We are pleased to announce good results achieved In the December half-year, total group revenues
by the Perpetual group in the half-year to were $118.5 million, compared to $141.7 million
31 December 2001, to advise an increase in our for the same period last year. Revenues were
interim dividend, and to report briefly on the lower due to the change in status of ASX
performance and outlook for the company. Perpetual Registrars (APRL) to associate (so that
its revenues and expenses are no longer included
Financial results in group figures) and the sale of the Fund Services
The profit after tax attributable to the members business. These changes were offset in part by
of the company, before realised gains from the growing revenues in our wealth management and
sale of investments and before the profit on the corporate trust businesses.
sale of Perpetual’s Fund Services business, was
$25.9 million compared to $19.2 million for the Dividends
same period last year—an increase of 35 percent. In
The board has declared an interim dividend of
a period characterised by turbulence and uncertainty
50 cents per share fully franked. This represents an
in global markets, compounded by the tragic events
of 11 September 2001, this result continues our increase of almost 43 percent over last year’s
track record over recent years of increasing interim dividend (35 cents per share). This interim
half-yearly profits. Earnings before interest, tax, dividend is in line with our record over recent
depreciation and amortisation (EBITDA) rose to years of steadily increasing our dividend to
$46.9 million, compared to $40.7 million for the shareholders.
same period last year—an increase of 15 percent.
In view of the company’s continued strong cash
The sale of Perpetual’s Fund Services business to position, the board has decided not to reopen the
Royal Bank of Canada was finalised on 31 July dividend reinvestment and bonus share plans at
2001. This transaction resulted in a capital gain of this time.
$14.8 million after tax. Net realised gains from the
sale of this and other investments during the half- We will now briefly comment on each of our
year were $13.6 million. As a result, the group’s business operations, starting with our wealth
net profit for the half-year was $39.5 million, management businesses—Perpetual Investments
compared to $27.4 million for the half year and Personal Financial Services—which together
to 30 June 2001, an increase of 44 percent, generated revenues of $91.9 million for the
representing basic earnings of 105 cents per period, and an EBITDA of $42.7 million before
share for the period. unallocated corporate and support costs.
Perpetual Trustees Australia Limited
ABN 86 000 431 827
Perpetual Investments Total funds managed for our private clients,
Perpetual Investments’ revenues for the half-year trusts, estates and charitable foundations totalled
were $60.0 million, compared to $49.9 million in $5.2 billion at 31 December. This compared to
the corresponding period last year, an increase of $5.0 billion at 1 July 2001. We have made good
20 percent. progress in attracting clients to our portfolio
management service. During the half-year, some
The highlight of the period was the continuing 190 new clients entrusted $185 million to our care.
strong investment returns achieved by our
investment management team, especially in our In late 2001, we issued our first public offer
Australian equity funds. This helped maintain prospectus for Perpetual’s Select Investment Fund,
support for our funds from financial planners and our multi-manager private client fund. This service
investors, despite difficult conditions in equity is offered via our private client advisers to clients,
co-trustees and the wider retail market.
markets. Perpetual was recently named Morningstar
Fund manager of the Year 2001—the second Continued progress was made during the half-year
consecutive year we have won this coveted award. in strengthening our staff expertise and operational
systems in DIY superannuation, portfolio
Our proven investment approach continues to
management and back office administration areas.
serve our clients well in the face of volatile
In January 2002, we sold our half interest in
markets. For example, our flagship Industrial
Investor Security Group in order to focus our
Share Fund delivered a return of 14.9 percent
efforts on growing our presence in the financial
(pre-fees) for the 12 months to 31 December
advisory market under the Perpetual brand.
2001, compared to the return of 9.5 percent for
the S&P ASX 300 Industrials Accumulation Index
Corporate Trust
during the same period.
This division continued to grow well during the
New fund inflows slowed markedly during late period with revenues of $17.5 million, up from
September and October, but returned to budgeted $14.4 million in the corresponding period last year,
levels during November and December. Perpetual an increase of 22 percent. The division’s EBITDA
Investments’ total funds under management grew before unallocated corporate and support costs was
from $15.6 billion at 1 July 2001 to $17.6 billion at $8.3 million, up from $6.8 million in the period to
31 December 2001. Retail and mastertrust funds 31 December 2000.
rose from $9.9 billion to $11.7 billion.
Our securitisation trustee business has continued its
At 31 January 2002, our funds under management strong growth. 2001 was a record year for
had increased to $18.2 billion. residential mortgage backed securitisation programs
in Australia, and we won a number of significant
Personal Financial Services new mandates, notably commercial mortgage
backed programs from new securitisation clients
Our private client and superannuation businesses
including Mirvac, AMP Henderson, Investa,
together generated revenues of $31.9 million for
Australand, and ING. At 31 December 2001 we
the half-year to 31 December, compared to
had some $46 billion in assets under securitisation,
$29.3 million for the corresponding period last
increasing from $42.2 billion at 1 July 2001.
year. This reflects private client revenues of
$22.3 million (up from $20.2 million) and We continue to see a growing interest in our
superannuation revenues of $9.6 million (up from fiduciary and other support services to the debt
$9.1 million). capital markets and property markets, and we
Page 2
expect steady growth in this area of business. The OSCAR system represents a large investment
Our Responsible Entity service is also receiving to create a modern, efficient and internet-friendly
increasing interest as specialist managers seek to registry system. Moving forward, the new system
outsource regulatory compliance management and will enable APRL to compete more effectively, to
agent monitoring functions. become the leader in service innovation for its
clients, and to operate more profitably. To this
ASX Perpetual Registrars (APRL) end, we and our shareholder partner, Australian
Stock Exchange, plan to make further investments
During the past 6 months, APRL achieved a major
to improve the features and functionality of the
milestone: the successful implementation of its
OSCAR system.
new, proprietary Online Shareholder Communi-
cations and Registry System—OSCAR. The
Outlook
system went live in late September, and APRL
successfully migrated its 180 registry clients to the We start 2002 with equity markets around the
new system by 16 December, its target completion world at high levels after a bumpy period over
date. This involved over 8 million shareholder recent months. If markets continue to perform well,
records and over 116 million account records—a we expect our wealth management businesses to
achieve a good result for the balance of 2001-2002.
significant achievement and the culmination of an
Our profits depend significantly, however, on the
18 month system development effort.
value of financial assets under our management and
APRL greatly appreciates the strong support administration, so any serious decline in market
given by its clients during the development and conditions affects our outlook adversely.
implementation of the new system. Following the
In these circumstances, we continue to manage
migration of its clients to OSCAR, APRL no
our costs carefully while continuing to invest in
longer relies on Computershare for any services to
our systems, in our staff and in growing awareness
support its share registry operations.
of the Perpetual brand.
Despite the huge effort associated with this project,
In closing, we wish to thank all of Perpetual’s staff
it is pleasing to report improved profit results for
for their hard work and commitment over the past
the half-year. Our share of APRL’s profits was
half-year. Their dedicated contribution has been
$0.2 million, an unsatisfactory result but a good
critical to our pleasing result and positive outlook.
improvement on the prior full-year result when
we recorded a loss of $1.97 million.
During the past six months, APRL completed
major corporate actions for NRMA Insurance, Charles Curran AO
Mayne Nickless, Burns Philp and QBE Insurance, Chairman
amongst other assignments. We are also pleased to
report that APRL’s contract with Telstra was
renewed for a minimum of 3 years from
December 2001. With 2.1 million shareholders,
Telstra’s register is the largest in Australia. Graham Bradley
Following the successful introduction of the Managing Director
OSCAR system, Qantas has announced that it will
transfer its register to APRL in February 2002. Dated: 26 February 2002
Page 3
Half-year performance
June 1997 to December 2001
12-01 06-01 12-00 06-00 12-99 06-99 12-98 06-98 12-97 06-97
$m $m $m $m $m $m $m $m $m $m
Operating revenue 114.6 144.0 137.1 121.5 117.4 104.4 93.7 70.3 58.9 58.6
Investment income 3.9 4.6 4.6 3.6 2.7 2.3 2.8 3.1 2.6 3.1
Total revenues 118.5 148.6 141.7 125.1 120.1 106.7 96.5 73.4 61.5 61.7
Operating expenses 71.6 107.3 101.0 85.6 88.2 73.2 69.4 52.3 42.3 44.2
Earnings before Interest, Tax,
Depreciation & Amortisation (EBITDA) 46.9 41.3 40.7 39.5 31.9 33.5 27.1 21.1 19.2 17.5
Depreciation and amortisation 5.5 7.5 6.7 6.8 6.1 4.4 4.3 3.5 3.1 3.1
Goodwill amortisation 1.9 3.2 2.7 2.2 2.5 2.5 1.2 0.2 0.5 0.3
Interest expense 1.6 1.8 1.9 2.0 2.1 2.1 1.5 – – –
Share of net losses of associates (0.1) 0.1 0.2 0.3 – – – – – –
Profit before tax and realised
gains on investments 38.0 28.7 29.2 28.2 21.2 24.5 20.1 17.4 15.6 14.1
Tax expenses 12.1 9.0 10.1 9.8 8.3 9.4 6.3 4.5 4.7 4.3
Profit after tax and before
realised gains on investments 25.9 19.7 19.1 18.4 12.9 15.1 13.8 12.9 10.9 9.8
Outside equity interests in profit – 1.8 0.1 (0.3) (0.3) (0.3) – – – –
Net profit attributable to
members before realised gains 25.9 21.5 19.2 18.1 12.6 14.8 13.8 12.9 10.9 9.8
Net realised gains on investments 13.6 5.9 8.3 5.2 4.4 1.8 0.3 (0.2) 1.5 –
Net profit attributable to
members of the company 39.5 27.4 27.5 23.3 17.0 16.6 14.1 12.7 12.4 9.8
Basic EPS (cents) 104.9 73.1 74.3 63.6 46.5 46.1 40.8 36.9 35.6 28.1
Dividends per share (cents) 50.0 50.0 35.0 35.0 30.0 34.0 26.0 29.0 22.0 25.0
Australian Capital Territory South Australia Western Australia
Level 4 Perpetual House 89 St Georges Terrace
10 Rudd Street 89 King William Street Perth WA 6000
Canberra ACT 2601 Adelaide SA 5000 08 9322 6011
02 6248 7977 08 8239 4400
ASX Perpetual Registrars Limited
New South Wales Victoria Level 8
39 Hunter Street Level 28 580 George Street
Sydney NSW 2000 360 Collins Street Sydney NSW 2000
02 9229 9000 Melbourne VIC 3000 02 8280 7100
03 8628 0400
Queensland Level 4
Level 10 87 High Street 333 Collins Street
Riverside Centre Kew VIC 3101 Melbourne VIC 3000
123 Eagle Street 03 9853 3355 03 9205 4800
Brisbane QLD 4000
07 3834 5656
123 Margaret Street
Toowoomba QLD 4350
Website:
07 4632 1355 www.perpetual.com.au
P0633 02-02
