Australian Ethical considers M&A as revenue increases 38%

Australian-Ethical/ethical/ethical-investing/John-McMurdo/

23 February 2022
| By Laura Dew |
image
image image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

4 days 5 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 5 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks 1 day ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5