Australian Ethical considers M&A as revenue increases 38%
Australian Ethical has announced a 38% increase in operating revenue and funds under management as it targets a high growth strategy.
Reporting its results to the Australian Securities Exchange (ASX) for the six months to 31 December, 2021, the firm said operating revenue was $35.2 million, up 38% from a year ago.
Net profit after tax (NPAT) was $5.4 million, up 5% from a year ago, while funds under management were $6.9 billion, up 38% from $5 billion a year ago.
The firm’s operating expenses rose 45% to $27.4 million as the firm implemented a “high growth strategy”. This included a number of strategic hires, strong investment in brand and marketing with advisers and expenses related to new product launches, technology initiatives and M&A due diligence costs.
Managed fund flows (ex institutional) increased 129% following strong traction with financial advisers and the firm said it was considering how it could grow its institutional base.
It announced an interim fully franked dividend of three cents per share.
John McMurdo, chief executive, said: “As Australia’s original and leading ethical investors, we are well positioned to capture a significant share of this rapidly-growing market.
“We remain focused on implementing our long-term strategic roadmap to capture the significant opportunities amid growing demand from retail and institutional investors for quality ethical investing solutions.
“We anticipate continued and further investment in our high growth strategy as the strategy continues to gain momentum. With a number of initiatives currently underway, we will continue to deploy resources in strategic growth areas while actively seeking out appropriate M&A opportunities to accelerate our strategic plans.”
AUTHOR
Laura Dew
Recommended for you
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
