Positive earnings and profits in SFG's first full year



SFG Australia has reported positive earnings and revenue growth in a financial year that followed the effective merger of Shadforth Financial Group Holdings and Snowball Group on 26 June 2011.
Underlying net profit after tax (which excludes one-off costs related to the acquisition) grew 6 per cent to $28.6 million, earnings were up 7 per cent to $41.9 million, underlying earnings per share grew 3 per cent to 3.93 cents and net operating revenue was up 2 per cent to $118.3 million, according to results posted on the Australian Securities Exchange.
Results were reported on a pro forma rather than statutory basis to provide a more meaningful overview in light of the merger, the group stated.
The increases were driven by a "sound organic result" from each of the group's businesses, material revenue, expense synergies following the merger and tuck in acquisitions completed, SFG stated.
The group derived $6.3 million in synergies due to post merger integration, and said it was on track to achieve $10.5 million in synergies per annum from 2013 onwards.
Funds under administration fell 5 per cent to $9.3 billion and funds under advice dropped 7 per cent to $10.8 billion on the back of poor share market performance, the group stated.
Funds under management grew 18 per cent to $4.4 billion, largely as a result of the launch of the Strategic Fixed Interest Trust during the year.
SFG also announced the acquisition of Perth-based insurance broking business Parkside Insurance Brokers.
Recommended for you
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver unpack the latest unemployment numbers and what they mean for a rate cut, as well as how the latest flare-up in the ongoing US–China trade dispute has highlighted the remaining disparity between gold and bitcoin.
In this episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver take a look at the unfolding impacts and potential economic ramifications of the US government shutdown and the surge in gold and bitcoin prices.
In the latest episode of Relative Return Insider, host Keith Ford and AMP chief economist, Dr Shane Oliver, discuss this week’s RBA interest rate decision, a potential government shutdown in the US, and a new property scheme aimed at first home buyers.
In the latest episode of Relative Return Insider, host Keith Ford and AMP chief economist Shane Oliver discuss the latest Australian CPI data and their impact on future interest rate decisions. If the RBA opts to cut rates again, how will this affect investor and consumer behaviour?