Clime Investment Management Provides Business Update: Revenue Growth and Cost Savings
CIW (CIW) Share Update August 2024 Thursday 15th
Clime Investment Management Announces Revenue Growth and Cost Savings Initiatives
Clime Investment Management Limited (ASX: CIW) has announced a series of positive updates, including improved revenue guidance, significant cost savings, and key personnel changes.
Instant Summary:
- Improved revenue guidance for FY25.
- Secured a 3-year investment management mandate for Clearwater, expected to generate over $0.5m annually.
- Identified additional cost savings of approximately $1 million per annum.
- Retirement of Joint Company Secretary Mr. Simon Dutton.
- Appointment of Mr. Steve Lambeth as Portfolio Manager.
Improved Revenue Guidance
Clime Investment Management Limited (CIW) has announced an optimistic revenue outlook for FY25, building on the positive trends observed in the June quarter update. The company has secured a 3-year investment management mandate for Clearwater, which is expected to generate revenue exceeding $0.5 million annually. This new mandate is in addition to the revenue growth from inflows into CIW's managed funds reported earlier.
Additional Cost Savings
Following the sale of Madison Financial Group (MFG) to Infocus, CIW has identified further cost savings opportunities. These savings are projected to reduce operating costs by approximately $1 million per annum. The company plans to reinvest a portion of these savings into distribution and client service support, aligning with its focus on funds management.
CIW expects FY25 operating costs to be significantly lower than in FY24. The Board will provide more detailed guidance with the FY24 audited results, scheduled for release around 28 August.
Retirement of Joint Company Secretary
CIW has announced that Mr. Simon Dutton will retire from his role as Joint Company Secretary effective 16 August 2024. Mr. Dutton's primary position as Group Head of Risk is no longer required due to the reduced business complexity following the divestment of MFG. The company acknowledges Mr. Dutton's exemplary service and wishes him well in his future endeavors. Mr. Tushar Kale will now serve as the sole Company Secretary of CIW.
Appointment to Funds Management Team
CIW is pleased to welcome Mr. Steve Lambeth as Portfolio Manager, reporting to CIO Mr. Will Rigall. Mr. Lambeth brings extensive experience from his previous role with a well-respected equity manager, further strengthening CIW's funds management team.
Target Release Date
CIW intends to announce its FY24 audited results on or about 28 August. This announcement has been approved by the Board of Directors of Clime Investment Management Limited for release to the ASX.
The improved revenue guidance and significant cost savings are likely to positively impact CIW's stock price. The new investment management mandate for Clearwater and the additional cost reductions demonstrate the company's strategic focus on enhancing profitability. These developments could boost investor confidence and drive stock performance in the near term.
Investor Reaction:
Analysts are expected to react positively to CIW's announcement, given the clear steps towards revenue growth and cost efficiency. The retirement of Mr. Simon Dutton and the appointment of Mr. Steve Lambeth are also seen as strategic moves to streamline operations and strengthen the management team.
Conclusion:
Investors should keep an eye on CIW's upcoming FY24 audited results and monitor the company's progress in executing its strategic initiatives. The positive revenue guidance and cost savings measures indicate a promising outlook for CIW. Stay informed and consider the potential long-term benefits of these developments for your investment portfolio.