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Divestments hit IOOF’s half-year profits

Divestments hit IOOF’s half-year profits

Reporter
— 1 minute read

IOOF has reported an underlying net profit after tax of $79.4 million for the December half-year, but acknowledged recent divestments have affected the result.

The company said the $79.4 million figure was an increase of 1.8 per cent on the prior six months, but had decreased 14.9 per cent on the previous corresponding period.

IOOF chief financial officer David Coulter said the company’s recent divestments had resulted in a profit of $17.4 million, but the loss of revenue from these businesses “had an impact” on the company’s underlying net profit after tax (UNPAT).

“When you consider that those businesses would generate in a given half-year, had they run the course, around a $4 million underlying profit after tax, you can see the sort of impact that’s had,” he said.

“But we regard this as having generated significant value in that it focuses our business on what we do best, and that the realisation of value from these assets has been conducted in a thoroughly commercial and orderly manner.”

IOOF managing director Christopher Kelaher said these divestments had an impact on UNPAT of $3.3 million versus the prior comparative period, but described them as “strategic, pragmatic divestments of non-core assets”.

The company announced a dividend payout of 26 cents per share, which represents a 98 per cent payout ratio, which Mr Kelaher said had been enabled by the “strong cash flow” provided by the divestment profits.

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Divestments hit IOOF’s half-year profits
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