HUB24 posts 50% profit boost

HUB24 has reported a 50 per cent increase in statutory NPAT to $14.7 million in FY22 after the firm incurred $17.9 million in costs related to strategic transactions and other projects.

In an announcement to the ASX on Tuesday, HUB24 said that its underlying NPAT had increased by 133 per cent to $35.9 million. Underlying group EBITDA was up 92 per cent to $70.4 million while underlying platform EBITDA lifted 64 per cent to $62.3 million.

“HUB24 has delivered record growth during FY22 whilst remaining focused on enhancing value for our clients, delivering on our strategic objectives and our purpose to empower better financial futures, together,” the firm said.

“HUB24’s business footprint has continued to evolve with the acquisition of Class Limited (Class), which has provided further opportunities to leverage collective capabilities across the HUB24 Group to deliver products and solutions that enhance value for existing and new customers, whilst increasing market share and growing the SMSF market.”

As previously reported, total funds under administration (FUA) was up 12 per cent on FY21 to $65.6 billion while platform FUA rose 20 per cent and sat at $54.1 billion as of 18 August.

In its results, HUB24 revised its platform FUA guidance for FY24 to a range of $80 billion to $89 billion due to negative market movements of $3.5 billion in FY22.

The firm experienced record platform inflows of $11.7 billion over the financial year, up 31.7 per cent on the previous corresponding period (pcp). Platform revenue also increased, rising 59 per cent to $160.5 million.

After achieving record levels of organic growth, the total number of advisers using the platform increased 13.8 per cent to 3,486 as of the end of June.

Additionally, HUB24 noted that its platform market share had grown from 3.9 per cent to 5.1 per cent, representing an increase of 31 per cent.

A fully franked dividend of 12.5¢ per share was declared, bringing the full-year dividends for the financial year to 20¢ cents per share, an increase of 100 per cent.

“The business remains focused on our strategy to continue to lead the wealth industry as the best provider of integrated platform, technology and data solutions by developing innovative products and solutions that enhance customer value, create opportunities for further growth and progress our vision for the platform of the future,” HUB24 said.

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.