HUB24 has outlined expectations it will double the funds administrated by its platform in the next two years, as it has managed a 39 per cent growth in profit.
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.
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 31 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.
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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