Fiducian Group (ASX:FID) on growth path, reports robust half yearly results

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Fiducian Group (ASX:FID) on growth path, reports robust half yearly results

FID Half-yearly results
Image source: FID Update, dated 14 February 2022

Highlights 

  • Fiducian’s Funds Under Management, Advice and Administration (FUMAA) for half year ended 31 December 2021 was 23% higher than the corresponding 2020 period.
  • The Group’s acquisition of People’s Choice Credit Union would add around 5,000 clients, AU$1.1 billion of Funds Under Advice and 16 financial planners.
  • An interim fully franked dividend of 14.80 cents per share was announced for the half-year, representing 20% increase over the previous corresponding period.

Australia’s diversified financial service provider Fiducian Group Limited (ASX:FID) reported strong results for the half year ended 31 December 2021, driven by robust and resilient performance of its businesses.

The half-year to December 2021 saw a return to growth fuelled by economic recovery. Funds Under Management, Advice and Administration (FUMAA) was 23% higher than the corresponding 2020 period.

FID provides a range of services including financial planning, Investment funds management, Superannuation, Investment Platform administration and Information technology solutions.

ALSO READ: Fiducian Group (ASX:FID) delivers strong performance in FY21

FUMAA growth over the years

Source: FID Update, dated 14 February 2022

During the year, FID announced the acquisition of the financial planning business of People’s Choice Credit Union. The acquisition would add around 5,000 clients, AU$1.1 billion of Funds Under Advice and 16 financial planners, strengthening the Group’s distribution reach in South Australia and Northern Territory.

READ MORE: Strategic acquisition: Fiducian Group (ASX:FID) snaps up AU$1.1B financial planning business

FID delivers exceptional financial Results

The financial results for the half-year demonstrate the resilience of FID’s business and has enabled the Group to improve its financial returns and further strengthen the balance sheet.

FID Financial Results

Source: Copyright © 2022 Kalkine Media®, Data Source: FID Update, 14 February 2022

Notably, the Group’s Underlying NPAT for the 6 months ended 31 December 2021 was at AU$7.7 million, 16% higher than the corresponding 2020 period. The underlying earnings per share came in at 24.5 cents for the half year. Gross revenue was up 20% for the half year, driven by volume growth in the FUMAA.

ALSO READ: A look at key elements of Fiducian Limited’s (ASX:FID) diversified investment strategy

Dividend sees growth

The Group decided to pay an interim fully franked dividend of 14.80 cents per share, up by 20% over the previous corresponding period. The dividend is between the dividend policy range of 60 to 70% of statutory NPAT and is to be paid on 14 March 2022.

The Company highlighted that AU$1,000 invested in FID on 1 July 2012 delivered a fully franked dividend of $152.58 in H1.  FID has also delivered a double-digit EPS growth (based on UNPAT) in 17 out of 22 years since listing. What’s more, since Jun 2012, FID has outperformed All Ords by 954% (including dividend).

ALSO READ: Fiducian Group (ASX:FID) shares hit a record high after upbeat FY21 results

FID vs All Ords Growth

Source: FID Update, dated 14 February 2022

A snapshot of FID Businesses

Platform Administration Business

This is a market competitive platform offering for Investments, Superannuation and SMA administration with own licences. The Group recently launched IFA and SMA focussed product, which have potential for additional net inflows from distribution to IFAs and white labels / badge opportunities. The business had net in-flows of AU$163 million during first half of FY 2021-22.  Platform administration has delivered PBT Margins of 66%.

Funds Management

Fiducian provides highly effectively Manage the Manager System (Multi-Manager). Over 20 years, four Fiducian diversified funds have been ranked in the top decile to quartile in 64 out of 64 readings against up to 195 fund managers on Morningstar survey. Funds Management delivered PBT margins of 53%.

FinTech Capabilities

Fiducian offers market leading Platform Administration System, ‘Fastrack’ that provides an automated solution for advisers for investment execution and client registry. The Group also leverages its Adviser driven Financial Planning Software, ‘FORCe’ and Holistic ‘Fiducian Online’ Client reporting.

Financial Planning

Financial Planning enables steady flows to Fiducian Funds and Platform. Planners focused on delivering outcomes aligned to Clients’ Best Interest obligations

FID Business sees strong growth opportunities

FID Growth opportunities

Source: FID Update, dated 14 February 2022

ALSO READ: How Fiducian Group (ASX:FID) is maximising opportunities and growth drivers

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