Acquisitions drive soaring profits for HUB24

The listed platform group saw its profits rise more than 30 per cent in the first half of the 2021 financial year following a range of acquisitions.

The platform provider declared an underlying net profit after tax (NPAT) of $7.5 million for the first half of the 2021 financial year, a 39 per cent rise on the prior corresponding period. 

Group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) were up by 41 per cent, to $16.4 million. 

Platform funds under administration (FUA) climbed by 39 per cent, to $22 billion. The administrated funds on the platform kept ascending past the reporting date, to its current $24 billion.

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The platform segment produced a revenue of $43.8 million during the six months, up by 25 per cent on the previous half. 

Net inflows for the half reached a record high for the group, at $3.1 billion, 24 per cent higher than 1H20. 

The group’s acquisition of Xplore Wealth is also on track to be completed in March.

The transaction, along with an expected ongoing growth momentum, has seen HUB24 lift its FY22 target platform FUA range to $43 billion to $49 billion, from its previously anticipated $28 billion to $32 billion.

Total FUA, including the recently acquired Portfolio Administration and Reporting Service (PARS) from Ord Minnett, came to $31 billion for the half-year.

The PARS deal was completed at the end of November, with the company’s team moving across to HUB24. 

HUB24 also closed an off-market offer for one out of every three Easton Investments shares during the half, while divesting out of advice group Paragem. As a result of the deal, HUB24 now owns 38 per cent of Easton. 

The HUB24 board declared an interim dividend of 4.5 cents per share, fully franked, a 29 per cent increase from 1H20.

Acquisitions drive soaring profits for HUB24
Acquisitions drive soaring profits for HUB24
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