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Insignia Financial, an Australian wealth management firm, experienced a significant 14% drop in its shares during early Thursday trading.
This decline was prompted by the company’s announcement of a decrease in annual revenue and a dividend reduction. Despite a 40% increase in net profit for the 12 months leading to June, reaching A$51.4 million, the firm’s revenue suffered a 9.3% decline to A$1.95 billion.
The final dividend also saw a substantial 21% drop from the previous year, settling at 9.3 Australian cents a share. Insignia’s CEO, Renato Mota, attributed these results to lower average funds under management, strategic repricing choices, and investment market downturns in the fourth quarter of FY 2022. The company’s shares have depreciated roughly 25% over the course of this year.