Improved markets and investor confidence has enhanced Prime Financial Group's (Prime) funds under management (FUM) for the six months ending 31 December.
Total group FUM increased by $82 million between 30 June 2012 and 31 December 2012 to $1.083 billion including net new FUM of $34.9 million, representing an 8.2 per cent increase.
Normalised earnings before interest and tax (N.EBIT) fell nine per cent to $2.43 million over the six-month period. Net profit after tax (NPAT) declined 44 per cent to $1.017 million.
"Low investor confidence plus global and domestic uncertainty has started to abate, particularly in the last few months of H1 2013 and the start of H2 2013. This has seen the Australian stock market increase 13 per cent between July 2012 and December 2012," Prime said in a statement to the Australian Securities Exchange (ASX).
"This improving activity and sentiment should be balanced against a backdrop of recent stock market valuations and the prospect of a sustained stock market recovery, accordingly, Prime is cautiously optimistic."
Prime's ongoing operational focus for the next six months will be to continue reducing ongoing costs and improving operating cash flow.
In October last year, Prime posted a 27 per cent dip in net profit after tax to $2.81 million for the 2012 financial year, following a business restructure to address industry changes.
The financial services company also cited difficult domestic and global economic conditions throughout 2012 for its overall decline in funds under management to $54 million.
Prime managing director and chief executive Simon Madder said that despite economic conditions, the company's diversified model across wealth management, accounting and self-managed superannuation (SMSF) has proven to be resilient.
"In 2012, Prime has delivered consistent revenue compared to the prior year. Growth and expansion across wealth management delivered an increase in revenue of 11 per cent. This was offset by a decrease in underlying revenue in accounting and SMSF services by five per cent," Madder said at the time.
