Steadfast Upgrades Its FY19 Guidance, NPAT Estimated To Range Between $85 Million And $90 Million

  • Oct 18, 2018 AEDT
  • Team Kalkine
Steadfast Upgrades Its FY19 Guidance, NPAT Estimated To Range Between $85 Million And $90 Million

In the 2018 Annual General Meeting of the Steadfast Group Limited (ASX: SDF) held today, Managing Director and Chief Executive Officer Robert Kelly has announced the upgradation in FY19 guidance under which the company expects underlying EBITA to range between $190 million  and $200 million. The underlying Net Profit After Tax (NPAT) consensus for FY19 has been upgraded to range between $85 million and $90 million. The improvement in FY19 outlook is underpinned by the growing use of Steadfast Client Trading Platform (SCTP), rise in insurance premium prices, and acquisition growth across Steadfast group.

In the five-year target for Steadfast Client Trading Platform (SCTP), the company expects to transact ~$2.3 billion of Gross Written Premium (GWP) through SCTP by FY23. Further, based on growing use of SCTP the company expects an additional ~$23 million EBITA contribution per annum to the group in the next five year.  

In the voting round in AGM, over 99% of company’s shareholders voted in favor of re-election of Mr. David Liddy, Am and Ms Anne Odriscoll as Directors to SDF’s Board. The resolution passed for the election of Ms Gai McGrath has also won the majority votes of shareholders.

In FY18, company’s underlying revenue grew 16% to $583 million supported by mid-single digit price rise in insurance premiums. As a result, FY18 EBITA increased to $166 million, up 16% on prior year. Its statutory NPAT in FY18 was $76 million, 14% higher than previous FY17.

The company has monetized its insurTech with over $230 million of GWP transacted through SCTP in Fiscal 2018. However, the total GWP of the group has tremendously by 18% to $914 million delivering strong organic growth during past fiscal year 2018.

During Fiscal 2018 Steadfast’s Board has declared a full franked dividend of 7.5 cents per share for the full Fiscal year 2018. It represents 7% hike from last year’s dividend.

The acquisition growth of 6% has been reported for FY18, completing $90 million of acquisition with Whitbread Insurance Group which includes Axis Underwriting Services as the largest acquisition made  by the company in FY18.

Since Steadfast’s listing on Australian Securities Exchange in the August 2013, the market capitalization of the company has increased from $550 million to $2.17 billion as on 18 October 2018. In these five years company’s underlying EBITA has grown from $57 million to $166 million and underlying NPAT from $28 million to $75 million.

Steadfast has a network of 377 Australasia brokers including 16 new brokers from across Australia, New Zealand and Asia who have joined the network in fiscal year 2018.

With the conclusion of 2018 Annual General Meeting today, Steadfast Group’s stock jumped 7.664% to close at $2.950 on 18 October 2018. But, the stock has seen a negative performance change of 5.19% over the past one year. SDF today traded at a PE of 27.760 x with market capitalization of $2.17 billion.

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