Fiducian has reported a growth of $2.18 billion in its funds under management, advice and administration (FUMAA) to $11.5 billion as the business’ financial impact remained unaffected by COVID-19 during HY ended December 31, 2021.
At the same time, the statutory net profit after tax (NPAT) increased by 17% over the corresponding period to $6.7 million. Similarly, underlying NPAT at $7.7 million for the six months ended 31 December 2021 was 16% higher than the corresponding 2020 period, the company said in the announcement made to the Australian Securities Exchange (ASX).
Fiducian said that the acquisition of the financial planning business of People’s Choice Credit Union, which would strengthen its distribution reach in South Australia and Northern Territory, was also expected to add approximately 5,000 clients, $1.1 billion of funds under advice (FUA) and 40 staff including 16 financial planners.
“The current recurring revenue from this acquisition is over $8 million annually. We expect that the acquisition will deliver a benefit for shareholders in the medium to long term and management is confident of assimilating the business successfully for the benefits of our clients,” the firm said.
People’s Choice Credit Union staff joined Fiducian Group on February 1, 2022.
Fiducian Group’s executive chairman, Indy Singh, commenting on the results, said: “While COVID-19 continues to impact businesses and individuals, the group did not suffer any significant financial impact and that staff adapted well and continue to work from home as the foremost priority of the group remains the health, safety, and well-being of all our employees and associates that comprise the Fiducian family.”
