Tower exceeds forecasts
Tower has capped off a hectic 12 months with a better than forecast annual after tax profit of $73.1 million - $2.5 million more than forecast in its August prospectus.
Wednesday, December 8th 1999, 12:00AM
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In the past year Tower has fought off a hostile takeover bid from Guinness Peat Group, demutualised, acquired FAI Life in Australia for A$205 million and rebranded itself.
The company says earnings before interest and tax rose 22 per cent to $99.5 million.
Much of Tower's focus in the next year will be on further developing its brand and building its business in Australia.
Group general manager James Boonzaier says nearly two thirds of the group's assets and revenues are derived from across the Tasman. Australia generated $46.9 million of the $73.1 million profit in the year ending September 30, on total revenue of $898 million.
Boonzaier says Tower plans to expand its unit trust and master trust businesses in Australia.
In New Zealand Tower will focus on cross selling across its different businesses.
Boonzaier says all the divisions are profitable, and the only part of the business which did not achieve prospectus forecasts was Tower Asset Management. He puts that failure down to timing of costs rather than performance.
Savings and investments is the biggest and most profitable segment of the business, producing an after tax profit of $57.3 million on turnover of $1.05 billion. Risk, which is second biggest generated profits of $17.5 million on sales of $192.6 million.
| « AXA New Zealand reports good year | Get your tax questions answered online » |
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