In its half-year results Hub24 has reported net inflows have ballooned 85 per cent to $668 million, while also reducing its profit loss by 36%.
In a statement to the ASX yesterday, Hub24 reported a loss of net profit after tax for the six months ending 31 December 2015 of $1.8 million, down from a loss of $2.8 million for the prior corresponding period.
Despite this Hub24 said that the company had become cash flow positive on a monthly basis and saw funds under administration (FUA) climb from $1.7 billion at 30 June 2015 to $2.37 billion as at 31 December 2015.
The platform company saw financial performance improvements with 179 per cent increase in gross profit, 285 per cent increase in operating EBITDA1 and 63% increase in EBITDA2 over the prior corresponding period.
Hub24 managing director Andrew Alcock said that the company was on a "growth trajectory".
According to the statement, FUA is expected to increase, to approximately $3 billion, in the second half of FY16 following the completion of a transition with Fortnum Financial Group.
In October 2015, Hub24 announced a white-label partnership with Fortnum, involving the transfer of over $650 million to Hub24 in the second half of the 2016 financial year.
"Our customer base is continually broadening and we expect ongoing growth as we continue to win further white label opportunities," said Mr Alcock.
Hub24 experienced a 114 per cent increase in platform segment revenue growth, with direct platform expenses increasing 49 per cent, the statement said.
Finally the company said that Hub24 board member Hugh Robertson will retire 29 February 2016.
"The company wishes to thank Mr Robertson for his significant contribution during a period of both transformation and strong growth," the statement said.
SUBSCRIBE TO THE IFA DAILY BULLETIN
- 24 Oct 2017Super bills tabled in Federal ParliamentBy Miranda Brownlee
- 23 Oct 2017IFAs drive exchange-traded bond demandBy Jessica Yun
- 23 Oct 2017Government to beef up misconduct penaltiesBy Killian Plastow
- 24 Oct 2017CPA hurt by ‘negative undertones’ in financial adviceBy Aleks Vickovich and Katarina Taurian
- 23 Oct 2017Fiducian prepares for leadership transitionBy Staff Reporter
- 23 Oct 2017Industry association for insurance tech launchesBy Staff Reporter
- view all