AUB Group lifts on strong underlying HY result
Make us a preferred source
Make us a preferred source on Google
More news: Shares in AUB Group are up more than 3% to $29.45 in early trading after posting a 13% increase in underlying profit to $79.3 million. This was just shy of the consensus of $80 million by Visible Alpha.
It also lifted interim dividend to 25 cents a share from 20 cents a year ago.
E&P Capital analyst Olivier Coulon said the result was broadly in line despite a material drag in the international segment.
What they said: "We suspect the result has a relief rally today considering it appears the business continues to extract strong organic growth even as the tailwind from the rate cycle has abated. On 17x AUB trades c8 PE points cheaper than US listed peers," he said in a note.
AUB Group reaffirms guidance after first-half profit drop
The news: Insurance broker AUB Group has posted a 50% drop in first-half net profit but lifted its dividend payout and reaffirmed full-year guidance.
The numbers: Net profit came in at $26.4 million, down from $53.1 million a year ago and lower than the $65 million forecast by analysts. Underlying profit, which excluded the impact of a writeback in contingent consideration estimate in the year ago period, was up 13% to $79.3 million, just shy of the $80 million Visible Alpha consensus.
The company declared an interim dividend of 25 cents per share, up from 20 cents a year ago.
The context: AUB, which manages over $10 billion in premiums on behalf of its clients worldwide, said its main Australian broking business saw pre-tax profit rise 11.5% on the back of organic growth as well as acquisitions. It also posted improved profits in the international, agencies, New Zealand broking and BizCover insurance businesses.
The company reaffirmed its guidance for full-year underlying NPAT to be between $190 million and $200 million, representing year-on-year growth of between 11.1% and 16.9%.
The source: ASX
