Leading Australian stockbroking, investment and financial advisory firm, Bell Financial Group Limited (ASX: BFG) provides a range of products and services to customers across its network. These products and services produce a diversified revenue stream for the company.
The company held its Annual General Meeting (AGM) on 9 May 2019.
While addressing the shareholders at the AGM, the company’s Managing Director Alastair Provan provided an overview of Bell Financial Group’s performance in 2018.The year 2018 was another significant year for Bell Financial Group. With strong operating performance, the company moved to 100% ownership of Third-Party Platform in 2018. And along with that it opened an office in New York and launched a new investment service “The Bell Potter Guided Portfolio Service” during 2018.
During 2018, the company’s revenue increased by 7 percent to $220 Mn and reported a net profit after tax of $24.7 million, a 20% increase on the previous year. The company’s full year’s earnings per share were up 9% to 8.5 cents. During the year, the Board declared a final dividend of 4.25 cents per share (fully franked), taking the full year dividend to 7.0 cents per share, 100% franked. Based on the company’s year end closing price of 85 cents per share this represents a grossed up dividend yield of 11.8%.
The Company’s Portfolio Administration Service produced its fifth consecutive year of revenue growth increasing by 9% in 2018. This service is currently having 2,350 clients with $3.5 billion in assets under administration across its Portfolio Administration, Super Solutions and Super Command products.
The company’s Margin Lending and Cash business, Bell Potter Capital witnessed a revenue growth of 9% in 2018, producing profit before tax of $3.2 million, up 22% on last year. The Equity Capital Markets division also performed well in 2018 and successfully completed 120 transactions raising $1.7 billion in new equity capital.
The company’s Futures & Options and Foreign Exchange desks are also performing well in an extremely tough and competitive environment. At the end of last year, the company acquired Macquarie Bank’s retail futures business and added four experienced advisers to its Sydney desk.
The company is having a dedicated technology team of 72 across the Group comprising IT infrastructure and support along with developers and programmers who consistently maintain and provide updates and enhancements to the company’s proprietary platforms.
Bell Potter Capital team is currently working on a number of new business initiatives which could take an already established and profitable business to the next level. As at 31 March 2019, the company had Funds under Advice of $50.8 billion.
In the last six months, the share price of the company decreased by 30.91% as on 8 May 2019. At the time of writing, i.e., on 9 May 2019 AEST 3:38 PM, the stock of the company was trading at a price of A$750, down 1.316% during the day’s trade with the market capitalisation of ~A$243.77 Mn.
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