Equity Trustees on acquisition trail

Half-year profit rises 39 per cent

Vishal Teckchandani

Thu 28 Feb 2008

Financial services firm Equity Trustees (ET) is poised to make more acquisitions after its half-yearly results revealed no debt.
 
"We are continually digging around with an open mind," ET managing director Peter Williams told InvestorDaily.

"For the last 18 months or so we have been able to have resources that are continually trying to find opportunities."

The Melbourne-based firm acquired superannuation master trust businesses Freedom of Choice and Mutual Benefit Consulting last year.

Last year the firm also bought Brisbane-based Templetons Superannuation Management, which provides superannuation administration services to corporate clients.

However, the benefits of all the acquisitions were yet to appear in the company's bottom line, Williams said.

"Those [benefits] will come in at 2008 or 2009," he said.

ET reported 39 per cent lift in profit to $5 million for the six months to December 2007, compared to $3.6 million in the previous corresponding period.

The group's funds management business grew by more than 20 per cent but the private client division fell slightly.

ET remains cautious for the rest of the year due to market volatility and is forecasting 30 per cent earnings after tax growth for 2008, Williams said.

The firm declared a dividend of 50 cents per share.

ET's share price rose by $1 or 3.85 per cent to $27.