The Trust Company yesterday outlined its key priorities for the 2014 financial year, despite a looming takeover bid by Equity Trustees (EQT).
In the group’s 2013 financial year results, released to the Australian Securities Exchange yesterday, The Trust Company has outlined a focus on enhancing profitability, repositioning its New Zealand personal clients and upgrading its technology – despite the February takeover push by EQT.
“As far as I’m concerned its business as usual,” The Trust Company interim chief executive Shailendra Singh told InvestorDaily.
“I’m very pleased with the [FY2013] results, particularly on the back of the momentum that we’ve built in the second half. Some of the things we’re looking to implement in [FY2014] are going to deliver a very good level of price growth for shareholders.”
“In terms of the takeover. what we have said is that the EQT offer materially undervalues The Trust Company and we advised our shareholders to not take any action until such as time as they’ve read the target statement.”
Net profit after tax (NPAT) dropped by 7 per cent over the financial year ended February 28, reaching $11.7 million as a result of non-recurring items in the first-half of the year.
On a normalised basis, NPAT increased by 3 per cent from $11.6 million to $12.0 million.
“Spend related to this project in FY13 was $1.9 million, of which $200,000 was capitalised. Planned expenditure on technology initiatives under the revised approach in FY14 is $1.2 million, of which $400,000 will be capitalised.”
“When we actually completed the profitability review we became better informed in terms of our technology needs and what the right investment size should be given the size of the organisation,” Mr Singh said.
“Based on this, we have reviewed our initial technology strategy, which was largely around delivering an integrated solution through a single platform.
“What we’ll be looking to do is actually partner with the right service providers and look at our outsourcing opportunities . making sure that the investment span is actually the right size for the organisation we are.”
The Trust Company will release its target statement on April 19, advising shareholders on its preferred position regarding the takeover bid by EQT.
