posts strong result above prospectus forecast

IOOF smashes forecasts on maiden report
23/08/04 By: Andrew Nelson

IOOF Holdings Limited (IFL) today reported net earnings of $41.6 million for the 12 months to June 30, a result 85% above their prospectus forecast. The company, one of Australia's oldest financial services institutions said that cash earnings for the recently listed entity rose from $2.5 million to $18.8 million and were 29% ahead of forecast.


Group chief executive Ron Dewhurst said the result reflected the IOOF's determination to focus on shareholder value through disciplined growth.

"Funds are flowing into the group at a very healthy rate. This growth at both wholesale and retail levels is most encouraging and the continued support of our aligned distribution, suggests that funds growth will continue," he explained.

The total amount of funds under management and administration grew by 35% over the year to tip the scales at close to $16 billion.

Mr Dewhurst said that there were a number of projects and issues over the past year that have absorbed an enormous amount of resources, but even after a reporting an operating efficiency ratio of 80%, he said there was room for further improvement.

“Having met statutory and other requirements, the company can concentrate on extracting greater value from the wealth management industry on behalf of shareholders. Based on early current year market performance, I expect continued growth for IOOF," Mr Dewhurst concluded.

Shareholders will receive a 10c per share fully franked dividend, which is 2c above the prospectus forecast.