OneVue Holdings: Where Now Post The 67% Boost in Share Price in a Month

  • Jun 30, 2020 AEST
  • Team Kalkine
OneVue Holdings: Where Now Post The 67% Boost in Share Price in a Month

Summary

  • OneVue Holdings’ stock price zoomed up 66.67% in the last one month amid a challenging operating landscape. The Group boasts of a diversified revenue base that helps in sailing through adverse market conditions.
  • OneVue signed a five-year outsourced managed fund administration agreement with one of its first-ever clients, AUWCM, which would become its largest single managed fund administration client.
  • After AUWCM transitioning all of its funds, total number of items processed across the OVH business would increase by 25%.
  • A strong March 2020 quarter was delivered by OneVue with growth across all business lines despite negative market movements.

High-growth technology business, OneVue Holdings Limited (ASX: OVH), with service leveraged to the superannuation sector, operates via two core divisions- Fund Services and Platform Services.

OneVue’s diversified revenue base has successfully withstood adverse market conditions and less than 37% of the Group’s revenues are affected by market movements, as per OVH’s 29 April market update. Besides, OVH’s growth across all business lines in the last quarter despite the challenging operating landscape is a testament to its strategy.

The Group has a market capitalisation of around $ 100.47 million and the OVH stock has generated impressive positive returns of 66.67% in the last one month, 134.38% in the last three months and 4.17% in the last six months, amid a globally challenging and volatile operating landscape. OVH settled the day’s trade at $ 0.375 on 29 June 2020.  

Recently, TIGA Trading Pty Ltd, Thorney Technologies Ltd and Thorney Opportunities Ltd increased their shareholding in OneVue Holdings to 16.41% each from 16.04%.

Read More: Superannuation industry all set for super glory!

OneVue and AUWCM Deepen Long-Standing Ties: On 29 June 2020, OneVue announced a five-year outsourced managed fund administration agreement with Australian Unity Wealth & Capital Markets (AUWCM), conditional to satisfying APRA’s review during the required notification period.

Following the development, AUWCM would become OVH’s largest single managed fund administration client and post AUWCM transitioning all of its funds, OneVue Holdings would have a 25% increase in the total number of items processed across the business. The process of transition would be conducted in product tranches, starting in Q420 with completion expected in 2021.

In addition, as per the agreement, AUWCM’s range of investment and property funds and investment bonds would move onto OneVue’s managed fund administration service. This transition will aid AUWCM’s client engagement while augmenting the level of automation and efficiency for its range of investments.

Commenting on the latest development, OneVue Managing Director Connie McKeage stated that AUWCM was one of OneVue’s first clients, consequently, its people and partnership are very special to the Group. Moreover, their partnership has evolved from a long-standing managed fund installed software client to becoming OneVue’s largest single outsourced managed fund administration client.

OneVue Deputy CEO Richard Harris-Smith stated that the growth of relationship between the two parties will benefit AUWCM and OneVue, as the former is integrated into the Group’s highly automated and scalable model.

General Manager Operations and Enterprise Services for AUWCM, Sarah Keleher while explaining that OneVue was best positioned in the market to build on the service AUWCM was demanding for its investors, said:

Scheme Implementation Agreement with IRE: On 1 June 2020, OneVue and Iress Limited (ASX: IRE) entered a binding Scheme Implementation Agreement, which proposed that Iress would acquire entire shares in OneVue by way of a scheme of arrangement. If the Scheme is implemented, OneVue shareholders would receive $ 0.40 cash per share, representing a 66.7% premium to the last closing price of $ 0.24 on 28 May 2020, which is the last trading price before the scheme update.

OneVue is engaged in preparing a Scheme Booklet, which would contain information relating to the Scheme, not subject to any due diligence or financing conditions. The OneVue Board has unanimously recommended the shareholders to vote in favour of the Scheme, and the Group Directors also plan to vote shares in their control to support the Scheme, without a superior proposal in sight. Macquarie Capital Australia Limited is serving OneVue as the financial adviser and McCullough Robertson is acting as the legal adviser.

The indicative timeline and next steps have been outlined below:

OneVue Managing Director, Connie Mckeage expressed his delight in having reached this agreement with Iress that represents a significant premium to the Group’s current share price and a full-cash offer providing compelling certainty for OVH shareholders.

He further stated that OneVue is looking forward to working more closely with Iress, committed to delivering high levels of service to the clients.

March Quarter 2020 Update: In response to the ongoing COVID-19 pandemic, OneVue had swiftly moved its entire staff to working from home while continuing to deliver uninterrupted high-quality services to clients including meeting the Superannuation COVID-19 early release payment obligations as part of the new BAU environment.

The Group’s Managed Fund Administration continues growth trajectory, as the number of items processed in the quarter of 175,505 was up 29% on the same period a year ago and increased 3% on a quarter-on-quarter basis. Growth was attributed to the addition of new funds and an increase in transactions from existing funds.

However, funds under administration (FUA) did drop to $ 489 billion amid negative market movements. Revenues for this business remain largely unaffected by market movements and are being driven by the number of items processed.

New business opportunities were also created during the quarter with a strong pipeline for further growth and three new fund manager contracts expected to be signed in the current quarter and 10 fund managers anticipated to transition during 2020.

Superannuation Member Administration recorded growth in members from existing funds with the addition of 1,766 members. As at 31 March 2020, total number of members stood at 145,849, up from 144,083 in the prior quarter. The FUA was noted at $ 5.13 billion at end-March quarter, marking an increase of 5% year-on-year, with the focus on meeting the expectations of a rapidly changing regulatory environment.

Read More: Financial Planners to Come Under Regulator’s Net

Platform Services also continued to deliver strong inflows, with gross inflows moving up by 22% year-on-year to $ 352 million and net inflows reaching $ 143 million, after an increase of 7% on both year-on-year and quarter-on-quarter basis. The increase demonstrates continuing momentum from new and existing client base.

For the March quarter, total annual net inflows crossed $ 1.2 billion, representing an increase of 136% from the year-ago period. However, the FUA dropped $ 0.5 billion (9%) for the quarter due to the negative market movements.   

Must Read: The State of Superannuation Funds Amid the Accelerating Pandemic

 


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