Salary packaging and novated leasing company McMillan Shakespeare expects a 19 to 22 per cent drop in full-year underlying net profit.

The company expects to make $69 million to $72 million in underlying net profit after tax this financial year, down from the $88.7 million it made last year.

The company said its salary packaging business is largely unaffected by the COVID-19 containment efforts, with activity to June about 85 per cent level from a year ago.

McMillan Shakespeare said its asset financial business remained subdued and it has decided to restructure its UK operations to focus on off balance sheet originations and fleet management.

The company said its statutory profit after tax will take a PS8 million ($A14 million) to PS10 million ($A18 million) hit due to the write-down of intangibles and restructuring costs.

McMillan Shakespeare will also incur a $10 million charge to its statutory profit as it transitions to a new approach to its warranty products business that will add customer value.

Separately, the company said it had agreed to buy out Disability Services Australia’s 25 per cent interest in Plan Partners for $8 million.

Plan Partners provides plan management and support services for customers participating in the National Disability Insurance Scheme.

At 1053 AEST, McMillan Shakespeare shares were down 1.9 per cent to $8.70.

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