Jarden Securities ex-wealth lifts annual net profit 26%

The annual report shows for the year ended March excluding wealth rose to $12.6 million from $10 million the previous year.

The wealth business was hived off in April last year to FirstCape, its joint venture with National Australia Bank and Pacific Equity Partners, and so it contributed just $1.8 million to the latest result, down from $10 million the previous year and meant the company’s bottom line profit fell 8.1% to nearly $15million.

Revenue jumped 33.6% to $93.2 million with brokerage and foreign exchange rising less than 1% to $38.7 million while fees and commissions from investment banking jumped nearly five-fold to $15.9 million from 3.4 million the previous year.

Capital gain on financial assets jumped 81.5% to $29.5 million.

Operating expenses, mainly the management fees paid to its parent, Jarden Partners, jumped 32.5% to $70.2 million in the latest year.

The company didn’t pay any dividends for the latest year after paying $40 million the previous year so total equity rose to $108.9 million from $93.9 million.

Broker, dealer and client receivables rose 4% to $192.9 million, which are non-interest bearing with the majority settled within two days, while broker, dealer and client payables rose 3.3% to $174 million.

Jarden continues to pay contingent consideration to ANZ Bank New Zealand of $0.6 million relating to the sale of the Jarden Direct platform to Hatch Invest NZ and has a remaining liability of $3.7 million remaining, which is payable over the next 3.7 years.

The company had a $30 million subordinated loan from Jarden Partners at March 31 on which no interest was charged compared with no subordinated debt the previous year.

“Subordinated loans are measured at amortised cost and are repayable on demand, subject to NZX approval,” the accounts said.

Jarden Australia held A$818,000 of carbon units on the company’s behalf at March 31, down from A$875,000 a year earlier.

Jarden Securities executes trades on behalf of other Jarden subsidiaries and a subsidiary incurred a $7 million loss under this arrangement compared with a loss of $1.1 million the previous year.