In their report to shareholders, the directors of IOOF said the acquisition of Shadforth Financial Group in August 2014 was the main driver behind the “material increase in our profitability”.
Shadforth contributed $32.1 million to overall group underlying net profit after tax in the half year ended 31 December 2015, having contributed $17.2 million in the prior corresponding period.
IOOF also sold its Perennial Fixed Interest and Perennial Growth Management businesses to Henderson Group in November 2015, which the IOOF directors said would allow the company to concentrate on its core advice, superannuation, multimanager and trustee businesses.
The divestment of the Perennial businesses has “simplified” the investment management division of IOOF, “lowering the exposure to volatile institutional funds flow”, it said.
IOOF’s underlying earnings per share were 31.8 cents per share for the six months to 31 December 2015, up 11 per cent on the prior corresponding period.
The interim dividend increased to 28.5 cents per share, fully franked, up 14 per cent on the prior corresponding period.
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