• Perpetual Limited's net profit after tax attributable to equity holders was $12.0 million for the half-year ended December 31, 2024, compared to $34.5 million for the same period in 2023.
• Underlying profit after tax attributable to equity holders was $100.5 million, compared to $98.2 million in the prior corresponding period.
• The Directors resolved to pay a 0% franked interim dividend of $0.61 per share on February 27, 2025.
• Perpetual terminated the Scheme Implementation Deed with KKR to acquire the Wealth Management and Corporate Trust businesses after receiving unfavorable views from the ATO and an adverse report from the Independent Expert.
• The proposed acquisition value was $2.175 billion.
• Perpetual closed out forward contracts related to the KKR transaction, resulting in an after-tax gain of $16.3 million for the full year.
• An impairment loss of $25.5 million was recognized for the J O Hambro cash-generating unit due to a reduction in assets under management (AUM) driven by outflows.

Score: 5

Explanation: The sentiment is neutral to slightly negative. While underlying profit increased, the significant drop in reported net profit, the termination of the KKR deal, and the impairment charge weigh negatively. The company is facing challenges but is taking steps to address them.

• Net profit after tax attributable to equity holders decreased to $12.0 million from $34.5 million year-over-year.
• Underlying profit after tax increased to $100.5 million from $98.2 million year-over-year.
• The Scheme Implementation Deed with KKR for the sale of Wealth Management and Corporate Trust businesses for $2.175 billion was terminated.
• A 0% franked interim dividend of $0.61 per share was declared.
• The close out of forward contracts resulted in an after-tax gain of $16.3 million.
• An impairment loss of $25.5 million was recognized for the J O Hambro cash-generating unit.

• Underlying profit after tax attributable to equity holders increased to $100.5 million from $98.2 million year-over-year.
• The close out of forward contracts resulted in an after-tax gain of $16.3 million.
• Perpetual will retain ownership of its Corporate Trust and Asset Management businesses, which have strong market positions and provide organic growth opportunities.

• Net profit after tax attributable to equity holders decreased to $12.0 million from $34.5 million year-over-year.
• The Scheme Implementation Deed with KKR for the sale of Wealth Management and Corporate Trust businesses for $2.175 billion was terminated.
• An impairment loss of $25.5 million was recognized for the J O Hambro cash-generating unit due to a reduction in AUM, which is driven by outflows.
• The effective tax rate increased to 65.4% from 33.3%, mainly due to the non-deductibility of expenses relating to the impairment of non-financial assets and the write-off of the KKR transaction costs.

• KKR has asserted that a break fee is payable and has reserved its rights to seek further damages related to the terminated Scheme Implementation Deed.
• The consolidated entity has net current liabilities of $270.8 million due to the reclassification of borrowings, requiring refinancing before June 30, 2025.
• The company's revenues have a high degree of exposure to equity market volatility which has the potential to lead to a material financial impact.
• Failure to satisfy covenants on the syndicated facility arrangement could result in the outstanding balance of the loans becoming due and payable.

Perpetual will continue to execute on the business separation program, implement a new operating model for Asset Management, and deliver on an expanded cost reduction program.

• The Board believes that long-term shareholder value is best achieved by retaining ownership of its high-quality Corporate Trust and Asset Management businesses.
• Management expects to refinance the existing facilities in full prior to 30 June 2025.

The document reflects the challenges and strategic shifts occurring within the financial services industry, including mergers and acquisitions, regulatory scrutiny, and the need for cost efficiency.

• The document does not provide specific comparisons to industry standards or benchmarks.
• Without more information, it's difficult to assess Perpetual's performance against peers like Magellan Financial Group, Pendal Group (prior to acquisition), or global asset managers such as BlackRock or Vanguard.
• A comprehensive industry comparison would require analyzing metrics such as AUM growth, net flows, cost-to-income ratio, and investment performance relative to benchmarks.

• Shareholders will be impacted by the lower net profit and the terminated KKR deal, but may benefit from the company's decision to retain its core businesses.
• Employees may experience changes due to the business separation program and cost reduction initiatives.
• Customers will likely see changes in service offerings as the company restructures its businesses.
• Creditors are exposed to refinancing risk, but management expects to refinance the existing facilities in full prior to 30 June 2025.

• Perpetual will continue to execute on the business separation program to establish standalone businesses.
• Perpetual will implement a new operating model for Asset Management.
• Perpetual will deliver on an expanded cost reduction program.
• Management expects to refinance the existing facilities in full prior to 30 June 2025.

• December 2016: Tony DAloisio AM became an Independent Non-Executive Director of Perpetual.
• April 2020: Sylvie Dimarco was appointed Company Secretary of Perpetual.
• July 2021: Ms Trafford-Walker was appointed as an Independent Non-Executive Director of Perpetual.
• November 2022: The consolidated entity refinanced and entered into a new syndicated facility arrangement.
• January 2023: Mr Jones was appointed as an Independent Non-Executive Director of Perpetual following the acquisition of Pendal Group.
• September 2024: Mr Ruiz has been an Independent Non-Executive Director of Perpetual since September 2024.
• September 2018: Rob Adams was appointed as the Chief Executive Officer and Managing Director of Perpetual.
• September 2024: Bernard Reilly has been the Chief Executive Officer and Managing Director of Perpetual since September 2024.
• May 8 2024: Perpetual announced that it had entered into a binding Scheme Implementation Deed (SID) under which Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) will acquire the Wealth Management and Corporate Trust businesses
• July 5 2024: Perpetual Limited entered into two forward contracts to hedge its foreign currency exposure to the USD and GBP denominated borrowings to be settled upon completion of the Transaction.
• August 29 2024: Perpetual announced that on finalisation of the KKR Transaction, Gregory Cooper become the Chairman of Perpetual.
• December 10 2024: Perpetual announced that it had received written views from the ATO informing Perpetual that section 45B of the Income Tax Assessment Act 1936 would apply to the Scheme.
• December 31 2024: End of the financial half-year.
• February 24 2025: Perpetual closed out these positions on 24 February 2025. The close out will result in an overall gain of $16.3 million after tax for the full year, which is outside underlying earnings.
• February 27 2025: The Directors resolved to pay a 0% franked interim dividend of $0.61 per share.
• April 4 2025: Interim dividend payment date.
• June 30 2025: Management expects to refinance the existing facilities in full prior to 30 June 2025.
• November 22 2025: Borrowings due for repayment on 22 November 2025 from non-current to current liabilities as at balance date.