Shares in Challenger Limited (ASX:CGF) rose yesterday after the funds manager and annuities provider forecast a 7 per cent increase in its fiscal 2012 earnings.
In fiscal 2011 Challenger’s net profit dropped 7.5 per cent and revenue was down 6.6 per cent.
In the same period normalised profit after tax, before investment experience and significant items, rose 6.7 per cent.
The company has attributed the increase to strong cash inflows from sales of annuity products and is targeting a 25 per cent increase in retail annuity sales for the year ahead.
Challenger has declared a final unfranked dividend of 9.5 cents per share.
Shares in Challenger closed 4 per cent higher yesterday at $4.68.
