GMP Capital Trust today today reported a larger profit in its abbreviated 2005 financial year following its conversion to an income trust than in any previous full year.
The former Griffiths McBurney & Partners, which changed its year-end along with the conversion into an income trust in December, reported 11-month net income of $96.3 million, equivalent to $1.70 per unit.
That was up 31% from the prior full year’s $73.3 million, $1.31 per unit on a pro forma basis.
Return on equity for the 11-month period was 59.9%, and assets under administration at Dec. 31 were $1.75 billion.
GMP said if it had been a trust for the full 11-month period it would have generated distributable cash of $96.9 million, $1.72 per unit.
Revenue in the 11 months ended Dec. 31 was $255.7 million, up 36% from $187.4 million in the full year ended Jan. 31, 2005.
The company said revenue rose as a result of “continued strength in the Canadian capital markets led by active energy markets, our continued market share gains in the oil and gas sector, and our continued presence and participation in the mining sector.”
GMP said it ranked first in the value of common equity underwritings completed in Canada in 2005, and also in TSX block trading volume.
Compensation and benefits for the 11 months totalled $116 million.
Revenue in the November-December period was $53.2 million, compared with $59.5 million in the three-month final quarter of the 2004 financial year. Net income for the shortened quarter was $17.3 million, 30¢ per unit, compared with $24 million in the year-ago full quarter, which would have been 43¢ per unit.
“The 11-month period ended Dec. 31, 2005, was another exceptional period of growth and performance for GMP, where we surpassed virtually all of our financial records,” said CEO Kevin Sullivan in a release.
GMP profit rises following income trust conversion
- By: IE Staff
- March 1, 2006 March 1, 2006
- 12:50