Perpetual underlying profits to be higher

Perpetual profits to be higher underlying Topics: Stock Market on Tuesday February 15 2011, 10:19 EST Perpetual has increased its guidance for the first half underlying profit, even if it takes a goodwill non-cash impairment charge $ 10.6 million after tax.Underlying profit for the six months to December 31 will be $ 41 million, slightly above the company's previous guidance, given in October, $ 35 million to $ 40 million. The best underlying performance was due to good returns on investment of the company, the contribution of newly acquired Private Wealth and better performance in processing mortgage business.After considering important elements, net profit was likely to be of $ 35 million, Sydney-based Perpetual, said in a statement on the issues Tuesday.Significant included a gain of $ 6 million recovery of prior period losses related to the exact spot market fund, a profit of $ 1.6 million investment and an expenditure of $ 3,000,000 related to the response of the company to Kohlberg Kravis Roberts and Co offer October.There acquisition in the lack of cash impairment charge of $ 10,600,000 of goodwill, because his business smartsuper had estimated fair value as WASA unlikely to achieve long-term growth had been smartsuper forecast.The business is a leading self managed super fund management, acquired in September 2008.Perpetual said the ability to maintain profit margins and growth were challenged by what was proving to be a very competitive environment.Because, the impairment of goodwill was not effective, Perpetual will pay its dividend on the basis of a figure of 45.6 million U.S. dollars profit. The company policy is to pay 80 to 100 percent of net profit in dividends.Perpetual report its first half earnings on February 23.