Hub24 shares soar on half-year profit growth
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More news: Hub24 shares jumped nearly 10% in morning trade after the investing platform posted a 40% increase in first-half underlying net profit.
Hub24 shares were up 9.1% to $88.76 at 11am AEDT, having more than doubled in value over the last 12 months.
ECP Asset Management investments partner Damon Callaghan called it a "strong" result, with Hub24 continuing to consolidate wealth platform market share.
What they said: "The highlight, however, was the strong profit margin improvement across the company," Callaghan said.
"We continue to believe HUB’s technology assets will be a significant beneficiary of AI and workflow automation, both for the company’s profitability and the efficiency of solutions it can create for advisor clients."
Hub24 lifts FY26 target and ups dividend after 40% profit increase
The news: Hub24 missed analysts expectations slightly, even as it reported a 40% increase in underlying net profit to $42.6 million for the first half of the financial year, supported by record platform net inflows and growth across its business segments.
The numbers: The investment platform upgraded its FY26 platform funds under administration (FUA) target to a range of $123 billion to $135 billion, up from $115 billion to $123 billion.
Analysts were expecting underlying NPAT of $42.9 million, according to Visible Alpha data.
The company declared a fully franked interim dividend of 24 cents per share, up 30%.
The context: In a statement to the ASX, Hub24 said it had upgraded its FUA target because of strong net inflows and market movements during the first half, as well as "a pipeline of opportunities across all customer segments".
"With significant opportunities from existing and new customers across the Group, we expect strong growth and increasing profitability," said CEO Andrew Alcock.
The source: ASX announcement
