HUB24 profit up 125%
HUB24 has recorded a gross profit increase of 125 per cent to $10.9 million as at 30 June 2016 thanks to record net inflows of $1.61 billion (up 102 per cent).
The firm's announcement to the ASX said this result drove the company to a positive earnings before interest, tax, depreciation, amortisation (EBITDA) result for 2HFY16.
HUB24 also recorded a 94 per cent growth in retail funds under administration (FUA) to $3.31 billion driven by four consecutive quarters of record gross inflows.
"The company has increasing positive cash flows with no debt having achieved an operating EBITDA of $3.7 million for the period, up from ($0.4 million) for FY2015," the announcement said.
"Momentum is continuing into FY17 with retail FUA increasing a further $320 million to $3.36 billion (as at 25 August 2016) and with strong sales activity underway for new while label clients."
Commenting on the results, HUB24 managing director, Andrew Alcock, said the firm had created a foundation for further growth, with its capacity to transition large clients, deliver exceptional client services, and launch new features concurrently.
"We have recorded our first half year of positive EBITDA and have delivered positive monthly profit before tax [PBT] for both June and July 2016. Accordingly, we expect positive PBT for 1HFY14," he said.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
