Euroz flags larger profit, payout

Financial services business Euroz has flagged a surge in net profit for the 2017 financial year and an increased dividend payout, on the back of an improved performance by its broking arm.

Euroz expects to report a net profit of $17.9 million for FY17, up from $2.6 million in the previous financial year.

The Western Australia-focused business will also pay a final dividend of 5.5 cents per share, which, when coupled with its interim payout of 1.75 cents, brings its total dividend to 7.25 cents per share, fully franked.

That’s up from the 4 cents per share payout in FY16.

In a statement, Euroz said the major contributor to the improved result in FY17 was a strong equity capital markets contribution from Euroz Securities, the broking division of the business, which raised $865 million of new equity during the year.

“Euroz Securities has been recognised as the leading ECM issuer in the WA market in this past financial year,” Euroz said.

“ASX trading volumes across the full year were somewhat volatile with brokerage revenues only slightly up on the previous year.

“Excellent months were often followed by extremely quiet months.

“In totality this reflects an improved but only modest early cycle recovery in our Western Australian and commodity related markets.”

Euroz said its Westoz Investment Company and Ozgrowth businesses reported gross investment performance of 20.1 per cent and 19.4 per cent respectively, and would contribute $5.7 million to its headline profitability.

Entrust Private Wealth Management reported a 22.5 per cent growth in funds under management and closed FUM of $712 million, while its Prodigy Investment Partners funds management business made modest progress with closed FUM of $28 million.

Group FUM increased 24.7 per cent to $1.2 billion.

“We continue to implement our modest diversification strategy and are pleased our Western Australian markets have improved sufficiently to enable us to declare a solid increase in dividends to our shareholders this year,” Euroz said.