Salary packaging and novated leasing operator McMillan Shakespeare flagged challenging conditions bus including Brexit and competition in the asset management market as it reported a one per cent drop in revenue for the first half of the year.
The business, which offers a variety of asset management, fleet management and corporate finance services, recorded a 10 per cent drop in underlying net profit after tax and acquisition amortisation of $37.8 million, compared with $42.1 million at the same time last year.
In a presentation to investors, the company flagged a strategic review of its operations in the United Kingdom after the business ended the half with an underlying loss of $700,000. The conditions were “in part due constrained economic conditions and uncertainty associated with the UK general election and Brexit,” managing director Mike Salisbury said in a statement on Wednesday morning.
McMillan Shakespeare’s Australian and New Zealand asset management services segment had a decline in underlying net profit of 21.7 per cent, to $5.9 million. The “disappointing” result occurred due to a “highly contested and flat market”, management said.