The prediction is based on the company’s belief that operating performance for 2013/2014 will improve by 10 to 15 per cent from 2012/2013.
The company also believes net profit after tax will be “favourably impacted” by a number of one-off items.
Equity Trustees chairman Tony Killen said the improvement in performance had been the result of business development and growth initiatives as well as positive equity market conditions.
In a letter to shareholders, Mr Killen, said while there is inevitably some disappointment that Trust Company shareholders favoured the Perpetual takeover bid for the Trust Company over the Equity Trustees offer, the company is pleased the process is now concluded.
The acquisition of all shares in the Trust Company by Perpetual was approved on December 2 by the Supreme Court of NSW, following a 78 per cent majority vote by shareholders in favour of the Perpetual arrangement.
With the takeover now settled, Mr Killen said the market’s focus and attention will return more directly to the substantial progress and growth of Equity Trustees.
Equity Trustees' managing director, Robin Burns, said he considered 2013 to have delivered a “breakout performance” in underlying operating profit.
“Although our recent takeover attempt did not succeed we are very pleased to be able to show that it did not hinder or divert the business from the strategic growth initiatives which we have underway,” Mr Burns said.
“As we previously noted, we do expect some costs to be incurred in the current year to support the initiatives. However, these will result in further efficiency gains and increased capacity.”
Mr Burns also noted that Equity Trustees has now issued 318,909 new shares to accepting Trust Company Shareholders, taking the total EQT shares on issue to 9.66 million.
“This increased capital further strengthens the group balance sheet, which contains no debt,” he said.
