Perpetual Group (PPT) H1 2025 earnings summary

Executive summary

• Scheme with KKR was terminated in May 2024 after adverse tax and expert findings; focus shifted to business separation and sale of Wealth Management, while retaining Corporate Trust and Asset Management for autonomy and organic growth.

• Revenue and underlying profit after tax (UPAT) grew year-over-year, with UPAT up 2% to AUD 100.5 million, driven by Corporate Trust and Wealth Management.

• Statutory NPAT declined to AUD 12 million, down 65% year-over-year, due to significant one-off items including impairments and transaction costs.

• New Asset Management strategy launched, emphasizing simplification, operational excellence, and organic growth.

• Expanded Simplification Program targets AUD 70–80 million in annualized cost savings by FY27.

Financial highlights

• Operating revenue for H1 2025 was AUD 686.2 million, up 4% year-over-year; UPAT was AUD 100.5 million, up 2%; statutory NPAT was AUD 12 million, down 65%.

• Interim dividend of AUD 0.61 per share, unfranked, with a 70% payout ratio.

• Performance fees included in revenue were AUD 15.9 million, up from AUD 5.4 million in H1 2024.

• Expenses increased 4% year-over-year, mainly from performance fee-linked remuneration and investments in technology and compliance.

• Basic earnings per share fell to 10.8 cents from 30.9 cents year-over-year.

Outlook and guidance

• Expense growth for FY 2025 expected at approximately 4%, mainly from Corporate Trust and Wealth Management.

• Gross debt targeted to reduce to AUD 750–770 million by June 30, 2025.

• Sale of Wealth Management prioritized to further reduce debt and reinvest in core businesses.

• Underlying costs expected to reduce in FY 2026 due to the simplification program, though some expense growth will continue in Corporate Trust and Wealth Management.

• Management expects to refinance existing debt facilities before June 2025.