HUB24 parent company posts "disappointing" loss
Investorfirst, the company behind the investment platform HUB24, has reported a net loss after tax of $6.5 million for the half year.
Revenue for the half-year was $4.55 million, up by 50 per cent, according to the statement. Investorfirst also held $10.5 million in cash with no debt as at 31 December 2012.
Funds under administration on the HUB24 platform as at 31 December 2012 were $256 million, up from $120 million as at 30 June 2012.
The company announced in December 2012 that it had agreed to fully divest its stockbroking business to Wilson HTM "to focus wholly on the HUB24 platform".
"This agreement resulted in the transfer of a number of Investorfirst clients, advisers and analysts to Wilson HTM on 8 February 2013," according to the ASX statement.
Wilson HTM and Investorfirst have also agreed to create a 'white label' version of the HUB24 platform, which is expected to result in the transfer of $1.4 billion in funds under administration to HUB24 over the next one to two years.
Investorfirst chairman Bruce Higgins admitted that the result was "disappointing" but pointed out that the divestment of the stockbroking business had "significantly reduced operating expenses".
"HUB24 is experiencing strong demand from financial advisory groups seeking an independently owned, advanced technology platform solution - particularly those interested in our market-leading managed accounts functionality," he said.
"We have a firm belief that HUB24 is well placed to significantly grow our market share as an independent alternative to the major bank-owned platforms," said Higgins.
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