IOOF earnings boosted by SFG acquisition

In a statement issued by the financial services provider, IOOF reported an underlying net profit after tax, pre-amortisation, of $80.6 million for the half-year with its acquisition of SFG in July 2014 contributing $16.3 million.

“This record interim result represents another strong start to the year for IOOF,” IOOF managing director Christopher Kelaher said.

“The inclusion of SFG during the period has contributed $16.3 million to IOOF’s result and has been immediately earnings per share accretive.”

“The benefits of IOOF’s additional scale following this key acquisition are also immediately evident,” Mr Kelaher said.

IOOF also reported its revenue increased 38 per cent over the half-year, growing to $267.9 million, while also reporting a 38 per cent increase in organic net flows into its flagship platforms.

“When all of IOOF’s platforms are included, total platform net flows, at $818 million for the period, doubled in comparison to the flows experienced in the prior corresponding period,” a statement from IOOF said.

“Funds under management, advice and administration (FUMA) increased 26 per cent to $118.7 billion this financial year.

“The addition of $19.9 billion in funds from SFG was the main driver for this strong increase,” it said.

Commenting on the company’s outlook, Mr Kelaher said the scale IOOF has achieved in recent years through organic and acquisition growth has provided the “perfect foundation for the future”.

“This consistent strategic approach, coupled with disciplined management of IOOF’s cost base, will ensure we remain a highly successful business and provide value for all stakeholders.

“For the next six months, the successful integration of the SFG business into IOOF remains our key priority,” Mr Kelaher said.