Australian Wealth Management (AWM) is in a strong financial position to take advantage of acquisition opportunities, the company’s managing director has said.
The listed financial services firm has many more acquisition opportunities in the pipeline than in previous years, AWM managing director Chris Kelaher said.
“With a strong balance sheet and recurring earnings as hallmarks for AWM, we are well-positioned to weather the current market conditions, and will emerge with strong future growth,” he said.
AWM has already made two acquisitions this year – the purchase of $340 million worth of funds associated with Credit Suisse Asset Management (CSAM) in June, and a 70 per cent stake in Ord Minnett Holdings in May.
Kelaher’s comments come as the company reported its seventh consecutive profit increase.
AWM has reported a net profit after tax (NPAT) result of $65.2 million for the year ended June 30, 2008.
The result includes a non-recurring benefit of $2.9 million, associated with an overprovision for income tax in prior years.
“AWM’s revenue quality remains strong and pleasingly, we have no reliance on up-front or performance fees.” Kelaher said.
The company’s funds under management, advice, administration and supervision increased to $60.4 billion as at June 30, 2008. The total excludes funds under management associated with Ord Minnett and CSAM.
