Higher revenue forecast as FuM exceeds $1.5 bn
Australian Ethical Investment Limited (ASX:AEF) advises that Net Profit after Tax (NPAT) for the 12 months ending 30 June 2016 is expected to be between $3.47 and $3.84 million, an increase of 86% on the NPAT for the full year ended 30 June 2015 of $1.97 million.
The increase is due to strong growth in funds under management as a result of both the increase in market values and strong flows into Australian Ethical’s products. Funds under Management (FuM) has increased 31% since 1 July 2015 to $1.53 billion at 17 May 2016.
The increase in funds under management outweighed the impact of fee reductions made in July 2015, resulting in an increase in forecast revenue of 8.5% on the prior corresponding period.
Net flows for the 12 months to 30 June 2016 are expected to be in the order of $300 million which, if achieved, will be 67% higher than the last financial year. Total expenses are forecast to be 1% higher than the prior year.
Underlying Profit after Tax (UPAT) for the 12 months ending 30 June 2016 is expected to be the same as NPAT, with no adjustments for the period. UPAT for the 12 months ended 30 June 2015 was $2.45 million. NPAT and UPAT are reconciled as follows:
This profit guidance is based on unaudited management accounts to the end of April 2016. More information will be provided in the announcement of the full year results in August 2016.
