InvestorWeb's $48m dream
Three years ago, they were a group of former IT and research execu-tives from Lonsdale and IOOF with an idea.
Three years ago, they were a group of former IT and research execu-tives from Lonsdale and IOOF with an idea.
Next month, InvestorWeb lists on the Australian Stock Exchange with a market capitalisation of $48 million and a staff of 45.
In three years, 34 year old founder and chief executive Otto Buttula (pictured) has built a multi-faceted financial services group which covers research, funds management, software development and has re-cently added a stock broking capability. Other builders of the fledg-ling business include fellow former Lonsdale researcher David Wright and former IOOF executives Paul Collins and Darren Hunter.
InvestorWeb's prospectus rolls off the printing presses next week, containing some impressive revenue and profit growth figures. Net profit next year is projected to double to $1.4 million while revenue is expected to double to nearly $6.2 million.
Most of the initial projected growth is expected to come via the In-vestors Mutual funds management operation set by Buttula and former BNP Australian equities director Anton Tagliaferro just over a year ago. Investors Mutual has amassed wholesale mandates to the tune of $260 million and has recently signed a potentially lucrative retail distribution arrangement with Bendigo Bank. InvestorWeb projects revenue growth to rise from $144,000 in its first year to $3.2 mil-lion this financial year.
The group's online financial services operation, www.InvestorWeb.com.au, is also projected to grow strongly, doubling revenues to nearly $2 million this financial year. The online busi-ness is made up of the stock and managed funds research Internet site with 29,000 reistered members and is likely to include an online trading component in the future.
Buttula refutes charges that operating the research business along-side the funds management business creates a conflict of interest, citing other research houses such as Lonsdale and ASSIRT which are owned by divbersified financial services groups.
"Investors Mutual hasn't even been rated by InvestorWeb and even if it had, we would not change the research methodology for Investors Mutual benefit," he says.
Buttula is confident the stock will perform well on listing, although he concedes much of the initial premium may not be as high as other stocks with an Internet component.
InvestorWeb is seeking to raise about $10 million, or 21.3 per cent of the company when it hits the ASX board on September 30.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
