SFG Australia (SFG) has posted a 7 per cent increase in operating earnings before tax, depreciation and amortisation, and one-off and non-operating items (EBITDA) of $41.9 million for the full year to 30 June.
It achieved an underlying net profit after tax (NPAT) of $28.6 million, up 6 per cent.
The results were driven by the synergies attained from the merger and integration of Snowball Group and Shadforth Financial Group, and its other completed acquisitions, SFG managing director Tony Fenning said.
He said the group generated a strong result of $4.4 billion for its funds under management, an increase of 18 per cent from the previous financial year.
SFG reported a reduced result for its funds under advice (FUA) of $10.8 billion, a decrease of 7 per cent, and its funds under administration of $9.3 billion, a decrease of 5 per cent.
"The group has achieved a strong result during sustained, tough operating conditions," Fenning said.
"It has successfully executed the integration to near completion and upgraded the expected synergies."
At the start of the merger, the group planned to achieve $6.8 million in pre-tax annualised synergies by financial year 2013, gross of integration costs.
It has updated the expected total synergies to $10.5 million, as a result of the renegotiation of the group's platform supply contacts in first half 2012.
The group announced it will acquire Parkside Insurance Brokers, a small general insurance broking business based in Perth. It will join Shadforth Financial Group's Perth office.
During financial year 2012, SFG acquired wealth management firms Jeena Partners, Life Financial Services and Spencers Accountants.
The average FUA per adviser was $84 million, demonstrating that its high quality financial advisers are the key feature of the group, Fenning said.
"They have very high funds under advice per adviser, they are relatively young with an average age of 43 years and they have a very high level of industry qualifications," he said.
During the period, the Shadforth Financial Group and Outlook Financial Solutions businesses completed front office integration, business model refining and local integration of the tuck-in acquisitions.
Its subsequent initiatives include launching enhanced products and services to advisers and clients in first half 2013 and migrating clients to its contemporary offers.
The group reported $16.8 million in net cash available as at 30 June 2012, to fund the final dividend, regulatory capital requirements and future acquisitions, Fenning said.
During the year, it further strengthened its balance sheet with an expanded banking facility that will help with new acquisitions, he said.
SFG plans to continue its merger and acquisition strategy into financial year 2013, as well as oversee the implementation of regulatory reform responses and progress with its disciplined investment into information technology.
Adjustments to the business model are likely when exact details of corporate superannuation, group insurance and insurance inside super are known, particularly MySuper elements.
