HUB24, (ASX:HUB), has announced its financial results for the fiscal year ending June 30, 2023, showcasing robust growth across multiple metrics.
In a recent report, HUB24 revealed its Underlying Net Profit After Tax (NPAT) reached $58.8 million, marking a significant 64% increase. The company's Underlying Group EBITDA surged by 45% to $102.4 million. Additionally, the Underlying EBITDA for the Platform division reached $85.1 million, boasting a notable 37% increase, while Underlying Tech Solutions EBITDA soared by 91%, reaching $21.8 million.
Key Highlights of FY23:
- Total Funds Under Administration (FUA) Growth: The fiscal year recorded a substantial FUA growth, with a 23% increase, leading to a total FUA of $80.3 billion. This includes Platform FUA of $62.7 billion, which witnessed a remarkable surge of 26%, and Portfolio, Administration, and Reporting Services (PARS) FUA totaling $17.6 billion, marking an 11.1% increase. As of August 17, 2023, Platform FUA further climbed to $64.5 billion.
- Net Inflows and Revenue: HUB24's Platform experienced strong net inflows, totaling $9.7 billion, albeit a 17% decrease from the previous fiscal year. Platform revenue reached $208.8 million, showing a substantial 30% increase, while Tech Solutions revenue spiked by 133% to $67.5 million.
- Industry Recognition: HUB24's commitment to excellence was recognised as it was awarded Australia's Best Platform. This accolade was solidified by the company's increased market share, which surged from 5.1% to 6.1%.
- Dividend Growth: Shareholders witnessed an enhanced dividend payout, with a fully franked final dividend of 18.5 cents per share (cps), culminating in a full-year dividend of 32.5 cps, showcasing an impressive 63% growth.
- Advisor Engagement: The number of active advisors utilising the HUB24 Platform experienced a noteworthy 15% increase, reaching 4,011 advisors. The company also sealed 113 new distribution agreements, reinforcing its market presence.
The HUB24 Group's statutory NPAT stood at $38.2 million for FY23, demonstrating a substantial surge of 160%. As a result of this robust performance, the company's Directors have announced a fully franked final dividend of 18.5 cps to be disbursed on October 13, 2023.
Throughout FY23, HUB24 vigorously pursued its strategic initiatives, expanding its market reach and positioning itself for future growth. The acquisition of myprosperity played a pivotal role in advancing the company's 'platform of the future' strategy, consolidating its leadership position within the market. This acquisition widened HUB24's capabilities, offering potential avenues for enhancing customer value.
HUB24's dedication to innovation and customer service was underscored by positive feedback from both advisors and the broader industry, solidifying its reputation as Australia's premier platform. The fiscal year also witnessed a 15% surge in active advisors using the platform, along with the signing of new distribution agreements.
Moreover, the company's acquisition of Class in February 2022 proved successful, aligning with expectations and furthering customer engagement and industry advocacy.
Given its robust financial position and continued earnings growth, HUB24 is set to embark on an on-market share buy-back program, commencing on September 11, 2023. This program, funded by existing cash reserves, aims to repurchase shares over a 12-month period, with a projected maximum value of approximately $50 million.
HUB24's optimistic outlook for growth remains unwavering, as it strives to uphold market leadership and cultivate the wealth industry's future alongside fellow industry participants. The company's proactive approach and momentum as it enters FY24 position it well for continued success.
Commenting on the FY23 results, Andrew Alcock, HUB24's Managing Director, highlighted, "Our strong financial and operating performance during FY23 reflects our commitment to excellence and innovation. We're delighted with the significant growth in earnings and dividends, as well as the recognition of our platform's quality. The acquisition of myprosperity will further strengthen our capabilities and market position, allowing us to deliver even greater value to financial professionals and their clients."
