Australian Wealth Management meeting targets

SYDNEY - Australian Wealth Management Ltd (AWM) is on track to meet its scheme book forecasts for the full year, thanks to a 13 per cent increase in operating net revenue.

The investment firm today booked a A$113,000 ($122,241) interim net profit for the six months to March 31, in line with forecasts.

AWM said operating net revenue for the half year had increased 13 per cent to A$30.4 million.

This compares to forecasts of A$29.8 million.

AWM said the 13 per cent increase in revenue, left the company on track to meet its scheme book forecasts for the full year.

AWM managing director Andrew Barnes said he was pleased with the results to date.

"Since the listing, we have concentrated on delivering shareholder value through the execution of our strategy," he said.

"We have had the opportunity not just to deliver our Scheme Book forecast, but to undertake further restructuring and repositioning.

"I expect the benefits of this accelerated programme should flow through to future earnings."

Earnings before interest, tax, depreciation, and amortisation (ebitda) for the half year period was A$5.7 million, slightly down from the scheme book forecasts of A$6 million.

AWM was last year spun off from New Zealand life insurer Tower Group and listed on the Australian Stock Exchange on February 15, 2005.

In its scheme book, released in early February, AWM's forecasts a full year operating profit after tax and before goodwill amortisation of A$16.6 million for the 12 months to September 30,2005.

This compares to A$15.4 million for the same period in 2004.

AWM said it had experienced "sound business growth" in the first six months, with a shift to profitable new business and new revenue lines starting to produce results.

With the listing and separation from Tower Ltd completed, AWM said it had a strong balance sheet with net tangible assets of A$40 million and new borrowings.

Other developments over the six months include the completion of the business review, repositioning of Australian Executor Trustees (AET's) product portfolio, and the placement of the initial Bridges' planner equity scheme, with eight million shares issued to planners.

AWM's results include on off separation costs and restructuring costs, which were not provided for in the scheme book.

Expenses for the period was A$24.7 million.

The results include just two months of Bridges Financial Services results, but six months for AET.

As already announced to the market, AWM did not pay an interim dividend, due to the costs associated with the spin off and listing of the company.

Mr Barnes said AMW was a comparatively unique player in the market, with few companies operating across the whole spectrum of wealth management.

Shares in AWM fell A2.5 cents, or 2.7 per cent, to A90 cents.

- AAP