Perpetual Ltd has warned it will post a 34.5 per cent drop in its first-half after-tax profit due to restructuring costs and losses on market-linked investments.
The wealth manager on Wednesday said that while its interim results had not yet been finalised, it could disclose that its interim net profit after tax would be $22.9 million, down from $35 million a year earlier.
The 34.5 per cent profit drop is principally due to $10.2 million in after-tax restructuring costs associated with Perpetual's closure of its global equities manufacturing operation in Dublin.
Another $2.2 million, after tax, was lost on market-linked investments, the company said in a statement.
But Perpetual's interim underlying profit after tax would be $34.7 million, down from $41 million a year earlier, but higher than the company's latest guidance and the market consensus of $29 million, it said.
Underlying profit after tax for the second half of 2010/11 was $31.9 million, and Perpetual in November told the market to expect an interim 2011/12 figure of between $26 million and $31 million.
Recent cost reductions and cuts in equity-based remuneration associated with performance-based hurdles led to the improvement in underlying profit after tax, Perpetual said.
Perpetual's board has yet to make a decision on the interim 2011/12 dividend.
However given Perpetual's dividend payout policy and the expected interim after tax profit, the interim dividend will be between 43 cents and 54 cents per share, fully franked, the company said.
Perpetual will post its interim results on February 23.
Its shares closed at $21.66 on Monday.
