annual report 2011

IOOF | annual report 2011
Shareholder returns
2011 2010 2009 2008 2007
Profit attributable to owners of the Company ($’000s) * 99,489 77,371 9,044 24,286 26,476
Basic EPS (cents per share) * 43.1 33.7 7.4 35.6 41.5
Diluted EPS (cents per share) * 42.9 33.6 7.3 35.1 40.8
UNPAT 93,470 79,261 49,100 25,900 29,300
UNPAT EPS (cents per share) 40.5 34.5 21.4 37.9 46.8
Dividends paid ($’000s) 89,935 78,197 10,350 22,763 19,153
Dividends per share (cents per share) 39.0 34.0 15.0 33.0 30.0
Share price at start of year $5.99 $4.04 $5.10 $10.19 $8.50
Share price at end of year $6.60 $5.99 $4.04 $5.10 $10.19
UNPAT pre-amortisation 111,450 97,166 59,900 27,400 29,300
Return on equity (non-statutory measure) 12.9% 11.4% 11.3% 14.1% 16.8%
* Profit attributable to owners of the Company for 2007 to 2011 have been calculated in accordance with Australian Accounting Standards (AASBs). These include
restatement for the change in accounting policy for recognition of revaluation adjustments of Perennial share buy-back liabilities to reserves rather than profit or loss.
Returns to shareholders increase through both dividends and capital growth. Dividends for 2011 and prior years were fully franked.
Dividends
In respect of the financial year ended 30 June 2011, the
Directors declared the payment of a final dividend of 22.0
cents per share franked to 100% at 30% corporate income tax
rate to the holders of fully paid ordinary shares to be paid on
20 October 2011. The dividend will be paid to all shareholders
recorded on the Register of members on 7 September 2011.
The Directors declared the payment of an interim dividend of
21.0 cents per share franked to 100% at 30% corporate income
tax rate to the holders of fully paid ordinary shares paid on 23
March 2011.
In respect of the financial year ended 30 June 2010, a final
dividend of 18.0 cents per share franked to 100% at 30%
corporate income tax rate was paid to the holders of fully paid
ordinary shares on 13 October 2010.
Future developments
The Directors are continuing to examine further growth
strategies to maximise shareholder wealth. The Directors
believe, on reasonable grounds, that to include further
information, other than as disclosed below in events occurring
after balance sheet date, and the expected results of those
operations in subsequent financial years would be likely to
result in unreasonable prejudice to the Group. Accordingly, no
further information has been included in this report.
Events occurring after balance sheet date
The Directors have declared the payment of a final dividend
of 22.0 cents per ordinary share franked to 100% based on tax
paid at 30%, to be paid in October 2011.
On 27 June 2011, the Company announced that the Company
and Deakin Financial Group (DKN) had entered into an
agreement under which the Company, through a wholly
owned subsidiary, proposes to acquire DKN via a scheme of
arrangement. The arrangement to acquire 100% of shares
not already owned by the Group for $0.80 cash is subject to
DKN shareholder approval and as a result, no amounts have
been recognised in the profit or loss or financial position of
the Group at balance date. If accepted, the total consideration
payable to shareholders is estimated at $94 million.
The funds to be provided by the Company will be sourced
from existing cash reserves and an undrawn facility
arrangement with the Commonwealth Bank of Australia (CBA)
(Loan Facility). The Company and the CBA have entered into a
loan commitment letter and term sheet in relation to the Loan
Facility. Under the Loan Facility, CBA has agreed to provide
funding up to $75 million for the purpose of the Company
satisfying the Group’s obligations under the Scheme (including
the payment of the aggregate scheme consideration).
The right of the Company to access funds under the Loan
Facility is subject to certain conditions which will need
to be satisfied or waived by CBA. The interest and
establishment costs associated with the Loan Facility are
on commercial terms.
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