JDV secures extension on Westpac contract
Finanicial services firm JDV has secured its medium-term future by extending its online share trading contract with Westpac, which is JDV’s major customer and major shareholder.
Based on trading volumes over the past 12 months, the contract will deliver services revenue of about $15 million a year.
JDV managing director Peter Horne said the Westpac contract accounted for more than half the company’s revenue.
“This agreement ensures JDV continues to be well placed to realise its objective of being the leading provider of equities platforms and services to the Australian wealth management industry,” he said.
The next step in this strategy will be the launch of a new product for the financial planning industry that integrates online trading, portfolio management and tax services. The new product will continue JDV’s head-to-head battle with another listed company, IWL, which last year acquired Perth-based Sanford.
IWL announced in March that its contract to supply National Australia Bank’s online share trading service – originally established by Sanford – would be extended to October 2005.
On the financial front, JDV disclosed that it has provided an additional $2.1 million for costs associated with closure of the old Hartleys wealth management business.
Mr Horne said JDV was trading profitably but its financial results would be dragged down by one-off expenses.
The company expects to report an annual profit of $2 million, in line with its first half result.
