The result is up from a 2011/2012 NPAT of $401,000, which was affected by a number of 'one off factors', including a non-cash impairment charge of $210,000 relating to the revaluation of a Canberra property, redundancy costs associated with a business restructuring of $319,000, and legal costs for shareholder actions of $125,000.
This year’s NPAT is back in line with 2008/2009, 2009/2010 and 2010/2011 when Australian Ethical’s NPAT was $1.22 million, $1.03 million and $1.13 million, respectively.
Improved market conditions also contributed to the result, as did an increase in funds under management to $708 million (up 12.9 per cent from $669 million in 2011/2012).
Revenue also increased by 10.7 per cent to $16.38 million, and the underlying profit for Australian Ethical was $1.68 million (up 95 per cent).
The board has announced a final fully franked dividend of 45 cents per share, taking the total dividend to 85 cents per share, fully franked.
Commenting on the result, Australian Ethical managing director Phillip Vernon said the improvements that had been made to the business in recent years were “bearing fruit”.
“Improvements to our products, greater brand awareness and smarter sales and marketing has led to a doubling of our monthly new clients and a steady improvement in our flows,” he said.
He pointed out that the company’s flagship fund, the Smaller Companies Trust, has continued to outperform its benchmark “by a considerable margin over the long term”, returning 22.4 per cent over one year and 9.4 per cent over 10 years.
“There is a growing demand from investors for genuinely ethically managed investments managed in a professional and commercial manner. We are focused on delivering that in a sustainable manner over the long term,” said Mr Vernon.
As prescribed in Australian Ethical’s constitution, 10 per cent of the company’s profit is donated to “charitable, benevolent and conservation purposes”.
Accordingly, $117,300 will be donated to 11 organisations this year, including the Asylum Seeker Centre, East Timor Women Australia and Primary Ethics.
