GDG shares rise as revenue grows
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The news: Generation Development Group (GDG) shares rose despite posting a drop in statutory net profit due as it finalised its acquisition on Lonsec during the six months to 31 December 2025.
The numbers: GDG’s net profit tumbled 91% to $6.8 million but its underlying profit surged 63% to $20.1 million, compared to the prior period.
GDG shares were up 4.15% to $4.27 by 10:21am AEDT but over the past 12 months have dropped 16%.
Revenue grew 35% to $88.4 million, driven by funds under management growth in investment bonds, up 34% to $5.2 billion, and managed accounts, up 36% to $34.5 billion.
Expenses were up 29.3% to $66.2 million and was a result of investments in people, technology upgrades and new products.
The company declared a flat interim dividend of 1 cent.
The context: GDG said demand for investment bonds were driven by advisers utilising the asset class in client portfolios to gain tax efficiencies and for estate planning.
“Ongoing government focus on tax reforms, such as potential changes to capital gains tax, and Division 296 legislation further strengthen the long-term case for investment bonds,” the company said.
The company is also looking to launch a new version of its Lifetime Annuity during the second half of the financial year.
What they said: During an investor call GDG chief executive Grant Hackett said the company would be looking to launch new products and were looking to win mandates with superannuation funds.
“We are involved in some RFPs [request for proposal] at the moment and down to just a couple of life insurers to be able to compete for those positions and partner with those super funds around the retirement income covenant and some of those longevity solutions,” he said.
“So, some exciting news hopefully we can bring over the course of this calendar year.”
The source: ASX
