The market coughed up a fur ball but perhaps the recent rise was from those who were over stimulated in their expectations of thec consequences of these fine results?
Below is a story from The West today.
Sean Smith’s comment that Euroz has special status due to being one of the last large independent broking firms in Perth rings true for me, as does the comment that - as a result - it has solid and long term relationships that are proof against the ‘parachute’ invasion by mobs of East Coast ‘Johnny-come-lately’ WA boom-chasers, and I think there’s much else to like as well.
If the coughing of fur balls continues I might buy a few more shares …..
Nearly three years after buying its major Perth rival, Euroz Hartleys is casting around for other opportunities in wealth management and stockbroking to broaden its exposure to WA’s resources economy.
The listed broker, corporate adviser and fund manager on Wednesday revealed a strong third quarter that contrasted with depressed deal-making by major peers on the east coast.
Euroz Hartleys raised $612 million for its mainly mid-tier WA client companies during the March quarter to place a record sixth place on Dealogic’s Australian league table for the period and lift its total raisings for 2022-23 so far past $1 billion.
Its unaudited $4.4m net profit for the period compares to the $3.1m result booked by Euroz Hartleys for its first six months.
The company has also revealed a pending move to new offices in the QV1 high rise on the corner of St Georges Terrace and Milligan Street under a newly-signed 10-year lease.
The March quarter included $244m raised for drilling technology firm Imdex and $120m for uranium enrichment technology group Silex.
The Euroz Hartleys dealmakers also got the final quarter off to a strong start by rattling the tin for Raleigh Finlayson’s Genesis Minerals ($470m) and Canadian-focused diamond miner Burgundy Diamond ($193m).
Euroz Hartleys executive chairman Andrew McKenzie said the improved quarterly performance came despite “a continuing difficult market”.
“On a relative basis we feel that we enjoyed a good quarter while market volumes and activity for our competitors remained under pressure,” Mr McKenzie said.
Backed by $100m in cash and investments, the firm revealed also that it was interested in bulking up again through WA acquisitions, with wealth management a focus area.
It’s been eight years since the purchase of boutique adviser Entrust, and the firm believes there may be opportunities to add to its wealth management business and recurring revenue from the couple of dozen mid-tier firms providing advice around WA.
Consolidation and closures have left Euroz Hartleys and Eddie Rigg’s Argonaut as the last two big independent broking firms in Perth.
Euroz itself merged with Hartleys in 2020, increasing the merged group’s deal-making across WA commodities, notably gold, lithium and iron ore.
Both Euroz and Argonaut have long benefited from the strength of long relationships forged with client companies through various commodity and economic cycles, staying the course as east coast rivals parachuted into WA when business was booming but then inevitably retreated when conditions softened.
“We always see WA as fortified,” Euroz Hartleys managing director and head of institutional sales Tim Bunney said.
“What we’ve seen in the great success of the third quarter is that it’s a relationship State and a relationship business,” he said.
“At lot of these relationships are formed when it’s tougher, and then naturally when things swing up, you go through a harvest phase.”
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