GBST profit up despite challenges

GBST profit ASX Australian Wealth Management

14 February 2018
| By Staff |
image
image
expand image

Publicly-listed platform and wealth management technology provider, GBST has managed to report a strong first half recovery despite challenges within its Australian wealth management business.

The company reported profit before tax up 325 per cent to $1.9 million on the back of a 64 per cent increase in cashflow. The board declared an interim dividend of 2.5 cents per share fully franked.

The challenges within the company’s wealth management business were more than offset by 14 per cent revenue growth within its UK business.

The company told the Australian Securities Exchange that its Australian Wealth Management division recorded a seven per cent decline in revenue during the half to $7 million, due to reduced license revenue.

It said that, correspondingly, operating earnings before interest, taxation, depreciation and amortisation (EBITDA) before strategic research and development had dropped 32 per cent impacted by significantly higher legislative change work which was approximately double the usual level.

Commenting on the half-year result, GBST managing director, Robert DeDominicis said they were on target and the company was pleased with the improvements when compared to the preceding half and the operational efficiencies that had been delivered.

He said the company had a robust balance sheet and no debt, adding that GBST had been able to deliver the results “notwithstanding a significant increase in legislative change work”.

The company forecast an operating EBITDA before research and development in the range of $20 million to $25 million for the current financial year, consistent with guidance it provided to the ASX in August, last year.

Read more about:

AUTHOR

 

Recommended for you

 

MARKET INSIGHTS

sub-bg sidebar subscription

Never miss the latest news and developments in wealth management industry

Murray Wilkinson

In Australia this was the country of a "Fair Go". This Government is using us. We need direct action and we need to figh...

1 hour ago
mark mclennan

I am reading a lot about the unfairness of CSLR, QAR etc etc and it is clear that there is massive inequity taking place...

3 hours 54 minutes ago
Ross Smith

Sorry, every July I meet with each client who signs off on their FDS which disclosed adviser fees paid for the last 12 m...

1 day 1 hour ago

AustralianSuper and Australian Retirement Trust have posted the financial results for the 2022–23 financial year for their combined 5.3 million members....

10 months ago

A $34 billion fund has come out on top with a 13.3 per cent return in the last 12 months, beating out mega funds like Australian Retirement Trust and Aware Super. ...

9 months 3 weeks ago

The verdict in the class action case against AMP Financial Planning has been delivered in the Federal Court by Justice Moshinsky....

10 months ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND