Netwealth profit up in 2017-18 financial year

The company, which listed on the ASX on 20 November 2017, reported a statutory net profit after tax (NPAT) of $20.8 million, which included IPO transaction costs of $8.7 million.

Additionally, Netwealth reported its pro forma NPAT to be $29 million, 6.3 per cent above the company’s prospectus forecast.

Commenting on the results, Netwealth joint managing director Michael Heine said the company was “pleased” with its performance.

“We are experiencing significant structural changes in the wealth management industry in Australia,” he said.

“Many of these changes are benefiting Netwealth and will continue to accelerate as many institutions review their wealth management businesses and advisers demand greater flexibility in their choice of platform.”

Mr Heine said Netwealth will have an ongoing focus on “platform technology and functionality”, as well as administration and customer service.

The company said it expects future NPAT to be driven by funds under administration, pricing, cost management and “seeking new sources of revenue”.