Netwealth lifts FY profit after record inflows
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The news: Investment platform Netwealth has lifted annual profit and dividends, helped by record inflows during the year.
The numbers: Net profit for the year to June 2024 jumped 24% to $83.4 million, but was slightly below analyst estimates of $86 million. Total income was up 18.9% to $255.2 million, after the group saw record inflows of $22 billion for the full year, taking overall funds under administration (FUA) to $88 billion at June-end.
The group will pay a 14 cents per share final dividend, up from 13 cents a share a year ago.
Shares in the company were down 3.3% to $21.20 in early trading on the ASX.
The context: The company said its platform revenue increased 18% during the year to $249.5 million, while earnings margin improved to 48.8%. The Melbourne-based financial services group last month reported a strong performance in its June quarter on the back of expanded new adviser and licensee relationships.
It expects the new business pipeline and conversion rates across all segments to remain strong. Netwealth's strong showing has seen its shares jump nearly 50% over the past 12 months.
The source: ASX announcement
