Investors didn’t like the apparently solid interim result from fund manager IOOF (IFL) and higher dividend.
The company said yesterday that net profit jumped 45% to $48.2 million in the six months to December 2013, compared with $33.2 million in the six months to December 2012.
Revenue rose by 11% to $368.3 million in the half, compared with $332.8 million in the previous corresponding period.
And the company will pay a 22.5c a share dividend to investors, up from the 19.5c for the first half of 2012-13.
But Investors were unimpressed and sold down the shares from the start of trading. They ended down nearly 5% at $9.20.
IFL 6-Month – IOOF lifts profits, investors unimpressed
IOOF managing director Chris Kelaher said all the indicators of the company’s growth showed “continual improvement”.
“We have seen a 12 per cent increase in revenue and our total net flows are positive for the second consecutive half,” he said in yesterday’s statement.
He noted that rising markets and historically low interest rates should see investors re-enter the share market with confidence.
For IOOF, fewer regulatory headwinds should allow the company to “pursue value adding activities for our clients and shareholders alike”.
“The pursuit of organic, sales led growth, expansion via value accretive acquisitions and disciplined cost control has underpinned the growth of IOOF in recent times and will continue into the future,” Mr Kelaher said.
Funds under management rose $3.8 billion to $124 billion.
Some analysts thought that figure could have been higher, given the 14.3% rise in the ASX 200 index in the six months to December
