Perpetual expects its operating profit after tax to drop to $130 – $140 million for the 2008 financial year, compared to its 2007 result of $145.3 million.
In response to the current fall in revenue, Perpetual has conducted a review of all elements of the company’s cost base, particularly employee overheads which form the largest part of the organisation’s outlay, Perpetual chairman Robert Savage said.
“We expect the majority of savings from the review to flow through in the 2009 financial year,” he said.
“The effect of any benefits in the current year will be largely offset by one-off costs, such as redundancy payments, which were incurred to achieve savings.”
Funds under management in Perpetual Investments were $32.6 billion at April 30, 2008 representing a decrease of 17 per cent since June 30, 2007.
Funds under administration in Perpetual Corporate Trust were $195.6 billion at April 30, 2008 representing a drop of 7 per cent since June 30, 2007.
However Perpetual remains optimistic about its future growth potential, “Accordingly, we have continued to invest in the growth of our business. This investment is funded directly from operating earnings” Savage said.
Perpetual’s outlook for the 2008 financial year is presupposed on the All Ordinaries Index remaining at its current level.
Full year results will be presented to the market on 20 August 2008.
