Equity Trustees Confirms Half Year Result

25/02/2010

Equity Trustees Limited (ASX: EQT) today confirmed its audited 2010 half year financial results, which are in line with the company’s previous guidance.

In summary:

The Board today declared an interim, fully-franked dividend of 50 cents per share – maintaining the same level as the prior corresponding half year.

Equity Trustees’ Chairman, Mr Tony Killen, confirmed that the company is pleased with the better-than-expected first half net profit after tax of $3.7mil.

“The first half result was difficult given that investment markets in the September 2009 quarter were much lower than the prior corresponding period. It was only during the December 2009 quarter that investment markets moved ahead of the prior December quarter.”

“During the December quarter we also started to see more new business activity, including new responsible entity roles initiated by both local and overseas operators. We continue to drive new business through creative client solutions across each of the business units.”

“Management and staff have worked hard to contain discretionary expenses, but at the same time maintain our investment in people, systems and processes. This will position the company well as the investment markets continue to improve.”

“The company remains debt-free and produces strong operating cash flows, which together with the strength of the balance sheet and ample franking credits, supports the maintenance of the interim dividend at 50 cents per share.”

In commenting on the full year outlook Mr Killen noted that the indicators towards the end of the first half suggest that, in the absence of a major market correction, the second half result should be solid.

Mr Killen noted that the 7 year growth of the Equity Trustees group was in large part due to the efforts of the retiring Managing Director, Mr Peter Williams, effective 28 February 2010.

“Mr Williams has been an exceptional leader, moulding together an excellent executive team supported by talented and dedicated staff. The growth of the four business units has resulted in an outstanding growth phase, which has flowed to shareholders via increased dividends and growth in the share price.”

On behalf of shareholders, staff and other stakeholders, the board wishes Mr Williams the very best for his future endeavours.

The new Managing Director, Mr Robin Burns, will commence effective 1 March 2010.