Adams’ Perpetual swan song a curate’s egg

Perpetual Limited has announced a simplification program ahead the demerger from its Wealth and Corporate Trust businesses aimed at driving costs out of the remaining, focused Asset Management business.

The announcement of the simplification program came as Perpetual announced a bet kiss after tax of $472.2 million while emphasising its 26% lifting in underlying profit after tax to $206.1 million.

The company said the NPAT loss was a result of factoring in previously announced impairments of $547.4 million and other significant items.

It said operating revenue for FY24 was up 32% to $1,335 million reflecting a full 12-month contribution from Pendal Group and stronger revenues in Wealth Management and Corporate Trust.

The Board determined to pay a final dividend of $0.53 per share, 50% franked.

In what represented his last results announcement at Perpetual, outgoing chief executive, Rob Adams said the company’s full year 2024 financial performance reflected the increased scale of the Asset Management business and the continued growth of both Wealth Management and Corporate Trust businesses.

Adams, as expected, acknowledged larger than anticipated net outflows resulting from J O Hambro’s loss of a key portfolio manager but noted that notwithstanding this, total Assets Under Management in Asset Management had increased to $215 billion over the year.

He said the integration of Pendal and associated synergy program was essentially complete with the targeted $80 million in run-rate synergies having been exceeded seven months early.

“The acquisition has helped underpin stable revenue margins in Asset Management by providing greater diversity of revenue streams across our investment management capabilities, regions and channels,” he said.

Looking over the horizon, Adams said the planned demerger of the Wealth Management and Corporate Trust would provide each business with the focus and capital needed to grow in their respective markets.

“Perpetual remains focused on the successful delivery of the transaction and becoming a successful standalone Asset Management business with the strategy focus, quality teams, balance sheet strength and distribution reach to deliver growth for clients and shareholders over time,” Adams said.