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HUB24 Limited (ASX:HUB24), along with its subsidiaries, offers share trading and investment services to corporations and financial institutions by connecting them to advisors across Australia. It is headquartered in Sydney. The companyâs primary business focus remains on the delivery of the HUB24 platform. Its fully-owned subsidiaries comprise: Paragem Pty Ltd, a financial advice licensee, and Agility Applications Pty Ltd and ConnectHUB Pty Ltd, both offering data, reporting and software services to Australian stockbroking and wealth management market.
On February 26th, 2019, the company released its results for the half year ended December 31st, 2018 (1H FY2019), affirming its steady growth trajectory as it continues to deploy investments in capturing the market opportunities as they arise. The company stays committed to building a strong foundation for the future.
The Group recorded a 16.5% increase in overall revenue to $ 47.35 million for 1H FY2019 as compared to $ 40.64 million for 1H FY2018. Record half-yearly net inflows were achieved of $2.1 billion
The reported underlying net profit after tax (NPAT) for the group stood at $ 3.1 million, up 46% on the corresponding prior period from an Underlying EBITDA of $ 6.5 million, reflecting an improvement of 32% on 1H FY2018. Besides, the funds under administration (FUA) for the half-year increased by 46% to around $ 10.0 billion ($11.0 billion as of date) and the Group also achieved a new record for the net funds flow of $ 2.1 billion, also up 95% on the corresponding prior period despite challenging and disrupted markets, with market movements negatively impacting FUA and Platform revenue. The company also recorded a statutory NPAT of $ 3.2 million, up 39% on 1H FY2018.
As far as the platform segment is concerned, HUB24 accumulated revenues of $ 25.4 million to external customers, reflecting a 35% rise on the corresponding prior period (1H FY2018) and an underlying EBITDA for the platform segment at $ 8.0 million, up by 60% on 1H FY2018. The unfranked dividend for the first half was declared at 2.0 cents per share.
According to the results of the Wealth Insights Platform Service Level Report 2018, the company was at the top for overall platform offering and IT/Web Functionality services; also gained recognition for managed accounts and decision support tools as per the Investment Trends December 2018 Platform Competitive Analysis and Benchmarking Report.
Looking forward, the group aims to ramp up business investments further and intends to reach FUA of $ 19â23 billion FUA by June 2021.
Following the release of the final recommendations around misconduct in the banking, financial Services and superannuation industry by the Royal Commission, HUB24 claims to be firmly positioned to operate in the changing business environment. It is anticipated to benefit the company and encourage the prominence and adoption of the model platform and investment solutions.
HUB24 has a market capitalisation of AUD 750.69 million, with ~ 62.3 million outstanding shares. With the close of the market on Thursday, February 28th, 2019, the HUB24 stock price last traded at AUD 11.640, down 3.402%, indicating an intra-day fall of AUD 0.410. Also, the YTD return for HUB24 stands positive at 3.79%, despite the past performance being average with a negative return yield of 11.04% for the last six months, as on 27 February. The investors are keeping a close eye as the stock trend unfolds.
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