Fiducian Group (ASX: FID) reports 13% jump in FUMAA in FY23

August 15, 2023 08:48 PM PDT | By Sonal Goyal

Fiducian Group (ASX: FID) reports 13% jump in FUMAA in FY23 — Image source: Company PPT

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Highlights

During FY23, FUMAA increased to AU$12.3 billion, compared to AU$10.9 billion in the previous corresponding period.

Net inflows for the period stood at AU$265 million, while underlying net profit after tax reached AU$15.1 million.

Specialist financial services provider Fiducian Group Ltd (ASX: FID) has released its annual report for the year ended 30 June 2023, registering underlying net profit after tax of AU$15.1mn.

Funds under management, advice and administration (FUMAA) grew 13% YoY to AU$12.34 billion.

The company announced a final dividend of 18.0 cents per share. With this, the full-year dividend reached 30.3 cents per share, representing 63% of the underlying NPAT.

How did Fiducian perform in full year 2023?

The company started the year with AU$10.9 billion in FUMAA and ended the year with over AU$12.3 billion in FUMAA. Upward share market trends between October and January aided the FUMAA during the stated period.

As of July 2023, the funds under administration (FUM) were AU$4,592 million, 12% higher than the FY23 average. It is potentially contributing to additional revenue of AU$2.0 million annually, says the company.

The company reported net inflows of AU$364 million in FY23, comprising AU$100 million from Auxilium and Badges. Auxilium is a low-cost value proposition, which is competing to disrupt the current disruptor platform via high service standards, extensive product menu, in-house technology, and advanced reporting capabilities.

In the last five years, annualised UNPAT grew by 8%, annualised EPS jumped by 7%, annualised gross revenue gained 10%, and annualised dividend jumped by 9%.

Outlook

The badged products and Auxilium have received accolades from user, and in a short time, the company have around AU$210 million under administration in this category. FID expects that this can become a significant revenue generator and become a core segment of the business.

In the coming years, the company expects the expanded network of financial advisers to exceed the existing fund flows.

With the aim to expand the sources of revenue generation, the company seeks further earnings per share accretive acquisitions of client base.

To lift profits, the company said that it would remain focused on its competitive advantage.

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