Snippets From huntleys - looks positive to me. Divi payout for year is double that of last year.
Underlying FY10 NPAT of $97m increased 62% from $60m in FY09, 12% higher than our $86m forecast. Reported NPAT increased significantly to $68m. Our prior year comparisons are based on pro forma financials assuming IOOF, Australian Wealth Management (AWM) and Old Mutual Australia (now Global One) were combined for all of FY09. The result standout is the $40m in annualised after-tax cost savings expected to flow through to FY11. Funds under management and administration (FUMA) rose $7.2bn or 11% to $70.8bn, primarily due to strong market revaluations, while the average gross margin was stable at 0.42%.
Recommendation Impact (Last Updated: 26 Aug 2010)
Following the better-than-expected FY10 result we upgrade our medium-term forecasts and increase our valuation to $6.35 from $6.05. At current prices around $6.40, the stock is valued at an unchallenging forward PE of around 14x based on our FY11 earnings forecast of $105m. We retain our Hold recommendation.
IFL Price at posting:
$6.55 Sentiment: Hold Disclosure: Held
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