Austock Group’s $16 million net loss after tax for the year ended 30 June has masked the “credible” performance of the company’s property and life subsidiaries, the company’s non-executive chairman said.
The loss mostly comprised losses of $10.7 million from Austock’s Securities business, which was sold to Intersuisse Holdings in March, the company said in its full-year results announcement.
“The overall losses mask the very credible performance in difficult markets of our wholly owned subsidiaries Austock Property Funds Management and Austock Life,” non-executive chairman George Beaumont said.
Austock’s Life business grew “solidly in the difficult post-global financial crisis (GFC) market” to post a 23 per cent increase in revenue to $4.1 million, the company said.
The Life business also posted a 22 per cent increase in funds under management (FUM) to $301.2 million for the year.
Beaumont said that while the business has “considerable potential, Austock alone did not have the capacity to help it achieve that potential”.
As a result, Austock has entered into an agreement with Folkestone Limited to sell its property interests.
Should the sale be approved by shareholders, Austock will be in a “sound financial position”, the company said.
In July, Austock Group advised the market it had reached an agreement for the sale of Austock Property to listed real estate company Folkestone for $11 million.
Austock Property Funds Management has about $555 million in growth assets and manages four funds: the Australian Education Trust, Australian Social Infrastructure Fund, Austock Childcare Fund and the wholesale unlisted CIB Fund.
Austock shareholders will vote on the Folkestone property deal at its general meeting on 12 September.
