Commenting on the results, Wilson HTM chairman Steven Skala said the results – which follow the company’s loss of $1.6 million in the 2012/2013 financial year – are due to “significantly increased” profits in its Pinnacle funds management business and a turnaround in profits in Wilson HTM.
“I am pleased to report a return to profitability and a substantially improved performance by the group after a number of challenging years,” Mr Skala said.
“The turnaround to profitability in our securities business reflects better operating conditions, a continuing focus on cost reduction, thoughtful management and hard work by all staff,” he said.
Mr Skala also said the reducing of business costs, which led to the staff cuts across its financial advice and broking teams, contributed to its securities business returning to profit.
“It is satisfying to report that in better operating conditions, and through these initiatives, the securities business has returned to profit with a net profit before tax of $1.2 million compared with a loss before tax of $7 million in the prior year,” he said.
The results also follow after the company announced on the ASX that it is engaged in an ongoing dialogue with its competitor Shaw Stockbroking – although Mr Skala said no agreement or transaction had been made.
“Wilson HTM advises that it is engaged in an ongoing dialogue with Shaw Stockbroking Limited as part of a continuing review of Wilson HTM’s future strategy regarding its securities business,” Mr Skala said.
“Shareholders should note that there is no certainty that any agreement or transaction between Wilson HTM and Shaw Stockbroking will be reached as a result of these discussions,” he said.
Wilson HTM reported its business investment arm, Pinnacle Investment Management, turned a profit of $8.4 million, a 37 per cent increase from the previous year, while its wealth management arm turned a profit of $2 million, up from its loss of $4.4 million the previous financial year.
