Australian Ethical considers M&A as revenue increases 38%

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

23 February 2022
| By Laura Dew |
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?...

1 month 3 weeks ago

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

2 months ago

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

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS