Stockbroking firm Hartleys has reported a net profit of $3.9 million in the year to June 2005, highlighting the boom time conditions in the broking industry.
Stockbroking firm Hartleys has reported a net profit of $3.9 million in the year to June 2005, highlighting the boom time conditions in the broking industry.
The 2005 result was Hartleys' first full-year result since management bought control of the business in October 2003. The previous result, covering the eight month period to June 2004, was a net profit of $2.0 million.
Commenting on the 2005 profit, chairman Richard Simpson said "this fantastic result reflects the efforts and contributions by all employees at Hartleys and the buoyant commodity and equity market conditions".
The directors of Hartleys shared directly in the boom result, according to accounts lodged with the Australian Securities and Investments Commission.
One director earned $1.07 million last year, a second director earned $970,000, a third director earned $810,000 and a fourth director earned $730,000.
The Hartleys result followed higher profit reports by Perth's biggest stockbroking firm Patersons Securities and listed broker Euroz.
The main revenue driver at Hartleys was its core wealth management division, which generated revenue of $20.0 million ($12.4 million previously) and a pre-tax profit of $7.7 million ($4.9 million previously).
Hartleys' corporate finance division generated revenue of $4.9 million ($4.3 million previously) and a pre-tax profit of $2.4 million ($1.9 million previously).
The profits from the operating divisions were partly offset by a $4.4 million pre-tax loss from "other" activities.
The firm's profit result was after accounting for remuneration expenses of $14.9 million for its 95 staff. Hartleys staff who also own shares in the business benefited from dividend payments.
Total dividends for 2005 were 58 cents per share, compared with earnings of 62.8 cents per share.
Mr Simpson lauded the benefits of Hartleys' management buyout, which saw the firm return to a focus on the West Australian market.
Previously, as part of listed company JDV, the firm had pursued rapid national expansion, which led to a series of compliance issues and a period of big losses.
"With 100 per cent staff ownership of Hartleys, we have demonstrated that this ownership structure has delivered the anticipated results," he said.
"It has provided a strong working environment that reinforces and rewards high performance and ethical business practices."
