Perpetual Group (PPT) H1 2025 earnings summary

Executive summary

• Termination of the KKR scheme led to a renewed focus on internal separation and sale of the Wealth Management business, with Corporate Trust and Asset Management to be retained.

• Three core businesses—Asset Management, Corporate Trust, and Wealth Management—delivered profit growth despite corporate uncertainty, with UPAT up 2% year-over-year to A$100.5 million.

• Statutory NPAT declined to A$12.0 million from A$34.5 million, impacted by significant one-off items including a non-cash impairment and transaction costs.

• A new Asset Management strategy emphasizes operational autonomy, cost reduction, and growth in high-potential markets.

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

Financial highlights

• Operating revenue for H1 2025 was A$686.2 million, up 4% year-over-year; UPAT was A$100.5 million, up 2%; statutory NPAT was A$12.0 million, down 65% due to significant items.

• Interim dividend of A$0.61 per share declared, representing a 70% payout ratio of UPAT.

• Performance fees of A$15.9 million included in revenue, up from A$5.4 million in H1 2024.

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

• Significant items post-tax were A$88.5 million, including a A$25.5 million impairment in Asset Management and a one-off unrealised gain of A$24 million on a hedging facility.

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 A$750–A$770 million by June 30, 2025.

• Sale of Wealth Management prioritized to further reduce debt and reinvest in growth areas.

• Simplification Program to deliver A$70–A$80 million in annualized savings by end of 2027.

• Management expects to refinance existing debt facilities before 30 June 2025.