Euroz Hartleys Group has signalled a likely fall in annual profit with the main driver being a sharp decline in new capital raisings.
The Perth-based stockbroking and wealth management company said its unaudited net profit after tax for the period to 19 May, 2022 was $41.4 million.
That compares to a net profit of $52.5 million for the year to June 30, 2021.
Euroz said revenue from brokerage, advisory and recurring funds under management for the financial year to date was broadly in line with the previous strong year.
However, revenue from equity capital markets activity was down 40 per cent from the previous “exceptional” year.
The company has managed capital raisings worth $1.3 billion in the year to date, from about $2 billion in the prior year.
Executive chairman Andrew McKenzie said he was pleased with the performance of all aspects of the business.
“Equity capital markets activity this year was affected by broader market volatility but was still good compared to the prior bumper year,” he said.
Mr McKenzie said the company’s balance sheet has been strengthened by its continued profits and proceeds from the sale of its WAM Capital shares.
It received 49.95 million shares in WAM from the sale of its listed investment companies Westoz Investment Company and Ozgrowth.
It has sold the WAM shares for $103 million, taking its cash and shares to $207 million.
