Listed financial advisory firm DKN recorded a drop in profit of close to 30 per cent in the 12 months to June 2009.
The firm announced its annual results yesterday, stating the 28 per cent drop in net profit after tax to $6.19 million was in line with market expectations.
In December last year, company directors announced an impairment charge of $17.74 million as a result of the financial downturn.
As a result, DKN recorded a statutory loss of $11.54 million for the 2009 financial year.
Earnings per share for the full year were 8.28 cents compared with 5.51 cents for 2008.
“In this remarkably difficult year, DKN has remained consistently committed to its successful business model and, while results are well down on pre-financial crisis expectations, the group is operating as effectively and efficiently as ever,” DKN chief executive Phil Butterworth said.
“DKN has maintained good operating cash flows, a strong balance sheet, a highly-valued co-operative culture, a growing network of clients and a strong wealth management distribution base.”
The firm’s relationships with its network of practices remain solid, resulting in net inflows into DKN’s platforms remaining positive, Butterworth said.
“Results delivered over a number of years demonstrate the scalability of DKN’s business model. DKN has relatively fixed costs, so the significance of the market conditions has overshadowed the strength of our business,” he said.
“Our existing scale means that growth in investment markets drives disproportionately greater profitability for the group.”
Meanwhile, DKN intends to continue to push for fee-for-services and be involved in commercial reviews to ensure current structures provide adequate investor protection.
“DKN also advocates an increased focus on key issues such as adequacy of superannuation and insurance cover, which is being overlooked in the current debate,” Butterworth said.
DKN had surged 8.49 per cent to 57.5 cents by the close of trade on 24 August.
