IOOF (ASX:IFL) marks robust financial performance in FY21

Highlights

ASX-listed financial services company IOOF Holdings Ltd (ASX:IFL) on Friday presented its annual report 2021. As per this annual report, with over AU$450 billion in funds under management and administration, the new IOOF serves more than two million Australians. In addition, IFL administers more than AU$180 billion of superannuation assets, thus becoming one of Australia's largest super fund providers and one of the largest advice businesses with 1,975 financial advisers.  

IFL today revealed that with an underlying net profit after tax of AU$147.8 million from continuing operations, which is up 19% on the 2020 financial year, the company's financial performance since past 12 months has been robust. 

IOOF further revealed in its annual report:

  • Statutory net loss after tax of AU$143.5 million (after considering a non-cash goodwill write-down and MLC integration costs).
  • The IOOF Group held cash and cash equivalents of $670.7 million as of 30 June 2021 (30 June 2020: $374.7 million).
  • The board has determined that a dividend of 11.5 cents per share, comprising an ordinary dividend of 9.5 cents per share and a special dividend of 2.0 cents per share, resulting in a total ordinary dividend payout ratio of 75.8%, is appropriate.
  • The Group's TSR for the year ended 30 June 2021 was negative 8.5%, reflecting a share price decline of 13.2% and partially offset by a dividend yield of 4.7%.

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On 31 May 2021, IOOF completed the acquisition of MLC Wealth, bringing together two of Australia's longest-standing wealth management businesses to create Australia's leading wealth manager.

On Thursday, IOOF Group announced that it has decided to rebrand itself to 'Insignia Financial' as part of its transformation. However, the Group has maintained that the Insignia Financial logo will keep IOOF's signature green color symbolising growth, well-being, and prosperity.

Today the stock IFL closed a tad lower at AU$4.550 per share on ASX.

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Bottom Line:

The IOOF Group is in a strong financial position with significant free cash, borrowings within covenants, and a low-interest-rate environment, which reduces borrowing costs.

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