Clime loss means no dividend

Mike Taylor

Managing Editor and Publisher

31 August 2023

There will be no dividend paid by Clime Investment Management for FY23 with the company taking a significant hit with full-year statutory net loss before tax of $2.3 million.

This was down from a $200,000 profit reported 12 months’ earlier.

The company sought to explain that its results were “greatly affected by non-cash amortisation and depreciation charges.

The company also noted “a substantial lift in our expenses through our cash flow reports” stating that “as significant outflow occurred during the year in paying lcaims that will be reimbursed in FY24”.

Clime’s grim profit news comes barely a month after it announced entering a heads of agreement of the Godfrey Pembroke-linked Practice Development Group to create a licensing servicing business.

The company told the Australian Securities Exchange (ASX) that it had been “widely reported that PDG represents financial advisers that are associated with one of Australia’s iconic advisory brands”.

“It is the view of CIW that the bringing together of Madison Financial Group and PDG, with all 120 advisers (with approximately $8 billion of assets under advice) being serviced by a single entity, makes immense commercial sense,” it said.

Looking beyond its balance sheet issues, the Clime announcement pointed to the company’s MTIS acquisition and a consequent increased focus on managed accounts and synergies likely to flow.