(29 August 2005 – Australia) Australian financial services company Challenger has posted a net profit of $110.6 million, saying it expects to grow further in the current financial year.The result is an improvement on last year when the company reported a $202.8 million loss.
“In the absence of new opportunities, the company is confident of positive growth in revenues and profit in 2006 as synergies from the Challenger Group model continue to be realised,” the company said.
Challenger said it had reduced net debt to $601 million from $1.5 billion the year before.
Challenger Wholesale Finance and Challenger Life both beat their target of 18 percent return on net assets and the Wealth Management business become profitable – 12 months ahead of schedule.
“Challenger Wealth Management realised the benefits of its product and process investments, completing the closure or integration of legacy products and systems,” the company said.