HUB24 FUA up by a third

The platform provider recorded a statutory net profit after tax (NPAT) of $8.2 million for financial year 2020, increasing from $7.2 million in the prior year.

The group reported its platform market share had grown to 1.9 per cent over the year, from a prior 1.3 per cent. Funds under administration (FUA) were up by a third (34 per cent), to $17.4 billion, after it had signed 105 new licensee agreements during FY20 and 441 advisers started using the platform – an increase of 27.1 per cent from FY19.

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HUB24 had felt some impact from COVID, reporting net inflows were softer in April, but the company had still achieved net inflows of $4.95 billion for the full year.

The platform provider expects strong net inflows going forward, with it now targeting an FUA range of $28 billion to $32 billion by 30 June 2022.

HUB24 managing director Andrew Alcock said HUB24 had delivered strong results through the pandemic.

“We’ve achieved this in the context of COVID-19 without receiving any government or third-party concessions,” Mr Alcock said.

“Our business is [well positioned] for further growth and we would like to thank our customers, team and shareholders for their continued support.”

HUB24 saw its underlying NPAT rise by 49 per cent on the prior year, to $10.1 million, while underlying earnings before interest, tax, depreciation and amortization (EBITDA) surged by 60 per cent, to $24.7 million.

Underlying platform EBITDA for the year was $28.7 million, up by 59 per cent, while platform revenue came to $74.3 million, a 37 per cent increase.

HUB24 declared a second half fully franked dividend of 3.5 cents per share – with the full-year dividend of 7 cents being up by 52 per cent on the prior year.

The company also named former Westpac chief financial officer of insurance Kitrina Shanahan as its incoming CFO and joint company secretary, effective from 7 September.

She will replace interim CFO and joint company secretary Debbie Last, who will leave the group in September.

Ms Shanahan has a reported 20 years’ experience in finance. Previously, she held roles across BTFG as deputy CFO and group financial controller at Westpac.