Sydney, Australia - Insignia Financial, a prominent Australian wealth manager, experienced a significant decline in its shares early Thursday following the release of its annual revenue figures and dividend reduction.
Shares of Insignia Financial fell by 14% to 2.50 Australian dollars (US$1.62), reaching a low of A$2.49. The company currently holds the unfortunate title of the worst performer on the ASX 200 during this trading session.
Chief Executive Renato Mota commented on the matter, stating that multiple factors affected their results, such as lower average funds under management and administration due to investment market declines in the fourth quarter of fiscal year 2022, as well as strategic repricing decisions. However, he emphasized the positive outcomes resulting from deliberate strategic choices, as evidenced by reduced operating expenses and the achievement of their net positive inflow target.
For the 12 months ending in June, Insignia reported a net profit of A$51.4 million, marking a 40% increase compared to the previous year. However, their revenue experienced a notable decline of 9.3%, amounting to A$1.95 billion. Furthermore, their final dividend stood at 9.3 Australian cents per share, reflecting a 21% decrease from the previous year.
Financial analysts at UBS were quick to highlight that Insignia's final dividend failed to meet expectations.
Insignia's shares have depreciated by approximately 25% since the beginning of this year.
NEXT POST
