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HUB24 lifts inflows, profit flat

The platform provider recorded a significant jump in platform inflows and funds under management while profit remained flat, according to its half-year results.

Platform inflows jumped 24% to $3.1 billion on the 12 months prior while funds under management (FUA) grew 39% to $22 billion and segment revenue grew 25% to $43.8 million.

HUB24's statutory profit rose to just $6.1 million from $6 million however, revenue increased 18.9% to $62.1 million on the previous corresponding period.

In addition, platform underlying EBITDA grew 26% to $17.4 million while group underlying EBITDA rose 41% to $16.4 million.

Total FUA which includes the newly acquired Portfolio Administration and Reporting Service (PARS) from Ord Minnett, reached $31 billion.

HUB24 chief executive Andrew Alcock said the results show HUB24 continues to set new records.

"Our continued investment in innovation and focus on customer service excellence has been recognised this week with the company being awarded Australia's Best Platform Overall by Investment Trends," Alcock said.

The platform said the proposed $60 million acquisition of Xplore Wealth is on track to be completed on 2 March 2021.

In addition, HUB24 anticipates a proportional takeover of Easton and the divestment of its financial advice licensee, Paragem, to be completed in the second half.

As a result of the activity, HUB24 has increased the platform FUA target.

"Given the acceleration of our organic growth and the completion of our M&A transactions, HUB24's growth targets have been upgraded significantly to a target platform FUA range of $43-$49 billion from $28-$32 billion by the end of FY22," Alcock said.

HUB24 will pay an interim dividend of 4.5 cents per share, fully franked.

Read more: HUB24Andrew AlcockEastonInvestment TrendsOrd MinnettParagemXplore Wealth
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