Publicly-listed platform and wealth management technology provider, GBST has managed to report a strong first half recovery despite challenges within its Australian wealth management business.
The company reported profit before tax up 325 per cent to $1.9 million on the back of a 64 per cent increase in cashflow. The board declared an interim dividend of 2.5 cents per share fully franked.
The challenges within the company’s wealth management business were more than offset by 14 per cent revenue growth within its UK business.
The company told the Australian Securities Exchange that its Australian Wealth Management division recorded a seven per cent decline in revenue during the half to $7 million, due to reduced license revenue.
It said that, correspondingly, operating earnings before interest, taxation, depreciation and amortisation (EBITDA) before strategic research and development had dropped 32 per cent impacted by significantly higher legislative change work which was approximately double the usual level.
Commenting on the half-year result, GBST managing director, Robert DeDominicis said they were on target and the company was pleased with the improvements when compared to the preceding half and the operational efficiencies that had been delivered.
He said the company had a robust balance sheet and no debt, adding that GBST had been able to deliver the results “notwithstanding a significant increase in legislative change work”.
The company forecast an operating EBITDA before research and development in the range of $20 million to $25 million for the current financial year, consistent with guidance it provided to the ASX in August, last year.