Adviser platform HUB24 has revealed funds under administration of $12.9 billion for the year ended 30 June 2019, a 54 per cent increase compared with the previous financial year.
Growth in FUA continues to be driven by organic opportunities from both existing and new adviser relationships as well as transition opportunities from other platforms, HUB24 said in a statement to the ASX.
HUB24 revealed platform revenue of $54.1 million, up 36 per cent on FY18, and underlying platform EBITDA of $18 million, up 52 per cent in FY18.
The company also recorded a statutory net profit after tax (NPAT) of $7.2 million for FY19 ($7.4 million in FY18, which included a material non-cash fair value gain).
As a result, HUB24’s directors have declared a second-half dividend of 2.6cps (full-year dividends of 4.6cps, up 31 per cent) to be paid on 18 October 2019.
HUB24 said the opportunity for growth is now significantly larger and that in FY20 it will be making further strategic investments to capture growth.
It said it intends to recruit approximately eight new staff to grow its distribution footprint nationally and take advantage of this unprecedented opportunity.
Further, HUB24 also revealed plans to invest in an additional IT scrum team to extend its leadership in managed portfolios, which it said will deliver innovative solutions that provide enhanced accessibility and outcomes for clients.
The company said these investments are expected to increase net flows to the platform and generate ongoing FUA growth. As a result, HUB24 said it is now targeting a FUA range of $22-26 billion by the end of FY21, which is a $3 billion uplift on its previous FY21 target FUA range.
“The future Australian wealth management landscape is now taking shape and we are continuing to move forward with positive momentum and an unprecedented growth opportunity,” said HUB24 managing director Andrew Alcock.
“We are continuing to invest and based on our growth to date and strong pipeline, have upgraded our target FUA range for 30 June 2021.”
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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