On 25 January 2019, Investsmart Group Limited (ASX: INV), announced its updated guidance report for FY2019. The initial guidance of INV was given to ASX on 30 August 2018 where the projected annual growth of fund management income was approximately 300%.
However, after September 2018, due to deteriorating marketing conditions, measured by the All Ordinaries Accumulation Index reduced the inflow and delayed the launch of the new active exchange-traded fund (ETF). As a result, Investsmart Group is facing challenges to meet the Funds Management Income guidance.
By the end of 31 December 2018, the fund under management is $110 million, and the Funds Management Income growth was 168% as compared to first half of FY2018. The company will be releasing its half-yearly updates in late February 2019 with detail commentary.
The official date of listing INV on ASX is 21 April 2005 where the performance of the company was consistently negative. In last one year, INV’s performance was -53.57%.
By the end of FY2018 on 30 June 2018, there was an increase in the total number of portfolios managed through the proprietary Portfolio Manager (PM) by 23% to 109,472 members. As a result, there was also a jump in the value of shares managed by the PM by 35% to $11.87 billion. The value of funds managed by PM increased by 28.9% to $2.5 billion. There was also an increase in the value of cash managed in PM by 29.2% to $2.43 billion. Its retail fund under management increased by 214% to $104.4 million.
During the period, INV made a profit of $230,284. The balance sheet of INV appears healthy with a net asset base of $9,067,098 and a debt-equity ratio of 0.63 indicating the stable financial position of the company and it can very well meet its long-term obligations. The balance sheet also states that Investsmart Group will be able to meet the working capital requirements and even clear the short-term debt. Also, during FY2018, there was a decrease in the retained losses which is an indication of an improved operating efficiency during the period. The total shareholders’ equity is worth $9,067,098.
By the end of the FY2018 on 30 June 2018, Investsmart Group Limited had net cash and cash equivalent worth $4,565,772.
With the market open 25 January 2019, the opening price of the share was A$0.135 which is also the highest price recorded for the day. The lowest price of the day was A$0.130. By the end of the trading on 25 January 2019, the closing price of the share was A$0.130 which is equivalent to the previous trading day’s closing price with the stock holding a market capitalization of $17.18 million.
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