Directors’ Report
FY24 Reported NPAT FY24 Reported NPAT decreased to a reported loss of $12.5 million (FY23 reported profit: $8.9 million) and was adversely impacted by certain items that are not considered meaningful to the Group’s performance or are considered unusual to the ordinary activities of the business. Reported NPAT from continuing operations decreased to $4.3 million (FY23: $11.7 million) and fully diluted Reported EPS decreased 65% to 0.65 cps (FY23: 1.88 cps). The items that are not considered meaningful to the Group’s performance or are considered unusual to the ordinary activities of the business is outlined in the table below, with explanations that follow:
FY24 $m AASB 17
FY23 $m AASB 17
Reported NPAT
(12.5)
8.9 As per statutory accounts
Reported NPAT from Discontinued Operations and interest in Centrepoint Alliance Reported NPAT from Continuing Operations Economic assumption impact on AASB 17 Liability Net economic assumption impact on disabled lives reserves ( DLR )
16.8
2.8
4.3
11.7
2.2
(3.0)
(0.8)
2.3
Impairment of AIACF
16.3 12.2
10.0
Changes in Loss Component Current year timing impacts from assumption changes on CSM Costs considered unusual to ordinary activities
4.6
(2.3)
-
3.4
2.6
Boards key measure of profitability and basis on which dividends are determined
Underlying NPAT from Continuing Operations
35.3
28.2
Reported loss from discontinued operations and interest in Centrepoint Alliance (-$16.8 million impact)
Underlying NPAT from continuing operations excludes the impacts from: • the wealth management businesses that is continued to be treated as a discontinued operation (-$19.6 million); and • the equity accounted earnings (to date of sale) and profit on sale of the minority equity stake in Centrepoint Alliance in November 2023 (+$2.8 million).
Wealth management discontinued operation and exit
The wealth management businesses incurred an underlying operating loss of $4.7 million for the year ended 30 June 2024 (FY23: -$2.7 million) . Fee income and other related variable costs were impacted by the sale of the investment management business to Human Financial in the second half of the financial year and therefore included only those related to the superannuation business under the two remaining life investment contracts (WealthFoundations product) post completion of the sale. The wealth management operating expenses are expected to be fully eliminated post completion of the exit. They are expected to progressively reduce from FY25 as the related services and activities being performed under the various agreements with Human Financial and ETSL are terminated. An impairment loss of $10.5 million was recognised in the half year period (FY23: nil) that includes the impairment of the goodwill allocated to the wealth management segment (-$8.5 million) and the net of tax impairment of
32
ClearView Annual Report 2024
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