Euroz reports profit drop

Financial services company Euroz Hartleys has recorded a sharp drop in profits to just $3.1 million for the six months to December 2022, the company reported.

Its unaudited net profit after tax was $3.1 million for the six-month period, representing a significant 87 per cent decrease compared the corresponding 2021 period.

In 2021, Euroz reported a profit of $22.9 million for the six months to December, which was a drop of 8.8 per cent compared to 2020.

The Perth-based stockbroking and wealth management company didn’t provide any details on its equity capital market figure.  

In the previous period, the Euroz was involved in ECM raisings worth a gross $743 million.

Euroz did not have any non-cash adjustments for the period.  

The company’s previous profits partially came from non-cash adjustments tied to its formerly owned Westoz Investment Company and Ozgrowth Limited, both of which were sold in 2022.

Funds under management came to $3.3 billion, down from the record $3.7 billion in 2022.

The directors maintained the interim dividend at 2.5 cents per share.

“We are pleased to operate a profitable business in a hesitant market environment affected by a series of unprecedented and rapid interest rate rises and inflation,” Euroz said in the announcement.

Euroz executive chairman Andrew McKenzie said he was pleased with the performance and resilience of all aspects of Euroz Hartleys business.

“During this more difficult half our management team has worked particularly hard to improve our underlying business so that it can perform even better when markets inevitably rebound,” he said.

“The best measure of a strong business is of course the payment of dividends, and we are proud that we have now returned $327.5 million in fully franked dividends and $40 million of capital to shareholders across our 22-year history.”

The company’s cash and investments totalled 91.6 million.

At close of market, Euroz Hartley shares remained unchanged at $1.10.