Cost measures to reflect in results: Perpetual
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Samantha Hodge is a journalist with InvestorDaily, a Sterling publication.
Perpetual (PPT) expects its cost-reduction program will reflect positively in its underlying profit after tax (UPAT) for the six months ending 31 December.
"For the current financial period, the first half of the 2013 financial year, we expect our UPAT for the six months to be in the range of $25 million to $30 million," Perpetual chief executive and managing director Geoff Lloyd said in a statement to the Australian Securities Exchange (ASX).
"This guidance is based on financial markets as at the end of October 2012 and is subject to there being no material deterioration in markets and business conditions over the remainder of the calendar year," he said.
Despite a challenging 2012 financial year for the business, its cost reduction strategy is well underway.
In Perpetual's annual report released in June, the board announced its plan to reduce overall board costs by 30 per cent, or $500,000, from 1 July 2012 following a review.
As part of the changes, Perpetual chairman Peter Scott's remuneration was reduced by 42 per cent, while non-executive director remuneration, including committee allowances, was cut by an average of 25 per cent.
Cost reduction measures have been a key focus for Perpetual during the past six to 12 months.
In June, the group announced details of its Transformation 2015 strategy - a cost-saving imitative that seeks to "significantly simplify its corporate structure, refocus its operational activities and capture new opportunities for growth".
The initiative was targeting $50 million of annualised pre-tax run-rate cost reductions by full year 2015, the report said.
Total implementation costs were expected to be around $70 million before tax, including IT asset impairment, Perpetual said at the time.