Perpetual (ASX:PPT) post a dividend boost as profit surges for FY21

Company News

by Melissa Darmawan

Investment manager Perpetual (ASX:PPT) recorded a 31 per cent surge in revenue to $640.6 million for the financial year 2021, underpinned by solid inflows from ESG-focused Trillium and Barrow Hanley.

Their net profit after tax came in 9 per cent lower at $74.9 million from the year before after they bolted on the two U.S. investment managers which put a one-off dent to their figures. However, their underlying profit after tax came in at $124.1 million, a 26 per cent jump on the year before, sitting nicely above consensus of $119.1 million.

Total assets under management came in at $98.3 billion by the end of the financial year.

Outflows were seen in both their Aussie and international division in the period with inflows turning positive only in the final quarter for the Australian arm. Meanwhile ESG-focused Trillium saw record net inflows as ESG-focused investing started to dominate investing values in the market.

Perpetual's new business, Perpetual Asset Management International, reported a $40.7 million in underlying profit before tax finishing with $73.6 billion in assets under management.

Perpetual Asset Management Australia earned $42.2 million in underlying profit before tax, down 24 per cent. It finished with AUM of $24.8 billion.

Perpetual Private and Perpetual Corporate Trust posted profits of $35 million and $63.8 million respectively.

Funds under advice was a record $17.0 billion at year end, up 19 per cent from the year before thanks to their successful adviser growth strategy, positive market performance and strong net flows.

Chief executive Rob Adams highlighted how their global presence boosted the company’s footprint.

“We delivered solid results in 2020-21, with a strong uplift in earnings”,

“The year was truly transformational for Perpetual and saw our continued evolution from a largely Australian focused business with $28.4 billion in AUM, to now managing close to $100 billion in AUM, with a global footprint, a global client base and a strong forward-looking growth profile.”

A fully franked final ordinary dividend of $0.96 per share is to be paid in September bringing the total FY21 dividend to $1.80 per share, up 16 per cent on FY20.

Shares in Perpetual (ASX:PPT) are trading 0.4 per cent lower at $39.32.

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