The wealth platform provider produced a loss for the full year of $540,340, shrinking by 78.4 per cent from its prior damage of $2.5 million in financial year 2018.
Xplore’s revenue from ordinary activities for FY19 shot up by 48.2 per cent to $23.4 million while its service fee revenue grew by 27.3 per cent to $19.2 million.
The group’s EBITDA after adjusting for one-off items came to $3.1 million, increasing 8 per cent from the prior year and in line with its downgraded guidance given in May.
Xplore’s funds under administration (FUA) stood at $13.4 billion, with an additional $953 million coming with the acquisition of superannuation administrator DIY Master. In the previous year, Xplore had $13 billion in FUA.
The company has more than $2.9 billion in individual international securities, which it reported is far greater than any other retail platform in Australia.
Chairman Peter Brook said despite year of challenge and change, the company was well positioned for the coming year.
“In an industry facing regulatory uncertainty, demand for independent platform services is expected to grow,” Mr Brook said.
“The fallout from the banking royal commission continues and we have seen significant movement of advisers away from the big banks to independent licensees with further fragmentation expected to occur past the divestment of large bank-owned financial planning groups.
“As an independent platform and administration provider, Xplore Wealth is well positioned to take advantage of this trend.”
Earlier this month, the company appointed former BT general manager for bank financial advice Michael Wright to become its new chief executive in September.
The hire came following Xplore’s former CEO David Heather departed after being with the group for more than a decade.
During the year, Xplore exited its Queensland financial planning business, selling back its 50 per cent stake to the firm, McGregor Wealth Management.
Meanwhile it expanded into superannuation services, with the gain of super fund Aracon Superannuation along with DIY Master.
“These acquisitions complement our service offering and provide Xplore Wealth with a complete, whole of wealth solution to our clients,” Mr Brook noted.
“We are already experiencing the benefits of this with a number of new clients signing up to our superannuation offerings.”
Xplore saw a loss per share of 18 cents, smaller than the prior year’s loss of $1.05.
There were no dividends paid, recommended or declared during the period.
The company’s share price was 9 cents on Friday afternoon, less than half of what it had been a year before at 25 cents.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].
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