TRU Trust Company Of Australia

[donnie]

TRU should deliver another great result at the end of the month.


The Company experienced strong operating revenue growth in its ongoing
businesses for the half year ended August 2005: $24.3m compared to $21.9m, an
increase of 10.9% compared to the half year ended August 2004. Operating net
profit from ongoing businesses was $8.98m, up by 45% compared to the same period
last year. Trust’s focus on its ongoing businesses also produced strong growth in
operating EBITDA of $8.6m compared to $6.4m for the half year ended August 2004.
Over the past two years, Trust has concentrated on aligning its product offerings to its
strengths within the trustee, fiduciary, investment management and advice areas.
Trust’s ongoing businesses now consist of the following: Estates and Trusts; Funds
Management; Private Clients; Property and Infrastructure Custody; Structured
Finance; and Superannuation.
In light of this, the Company has increased its focus on its core strengths by exiting
the following businesses over the past year:
• Custody business in equity, fixed interest and related asset classes;
• tax and accounting; and
• superannuation administration.
Trust also formed a 50/50 joint venture in securitisation with The Bank of New York in
June 2005. This partnership offers substantial local presence and the expertise and
knowledge of a global leader in corporate trustee services.
Trust’s Managing Director, Mr Jonathan Sweeney said that these developments
provide a clear focus on products and services that are directly aligned to Trust’s
strategic principle: trusted financial solutions, personal relationships and integrity.
“We have focussed on trustee, fiduciary, investment management and advice
services – areas where we have real strategic advantages.
We are confident that this product mix provides a strong foundation for future growth
opportunities,” Mr Sweeney added.

http://sa.iguana2.com/cache/028077e9...TRU-245076.pdf

HME is worth a look as well a very good company too.

[mark100]

A very boring company here. Although today they've announced the purchase of NZ Guardian Trust for A$32m, to be funded from cash reserves. The impact of this transaction on TRU's funds under supervision is quite substantial, lifting them 38% to $163b.

They say the transaction will be EPS accretive from year 1. Given TRU is paying for NZ Guardian from cash reserves that are currently earning low rates of return, I would expect the EPS accretion could be quite substantial

[lewinsky]

Looking at the chart, if you had invested 1,000 shares 5 years at $860 you would now have $611.

PE of 18 and Dividend yield of 5.48% doesn't really rattle my cage.

I think there are better shares out there.

Wont be in my 2011 shopping basket

[mark100]

Given I haven't owned the stock for the past 5 years I couldn't care less what it's done over that period and I don't care for historical ratios either.

Like all most money managers, their stock price ands earnings have been depressed by the crash in 08. That doesn't mean they won't be good investments again at some point. TRU has also been sitting on $36m cash, around 20% of their market cap. I am interested to know what sort of earnings accretion is possible from today's acqusition. Given it will lift funds under advice by approx 38%, is a better fit within TRU than Suncorp, and it's been paid for from idle cash reserves makes me think the EPS accretion could be pretty good.

[COLIN]

I did notice that Suncorp had to write off a substantial amount of goodwill on disposal of Guardian; this may - or may not - indicate that Trust Company got it for a good price (to them).