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HUB24 reports record results

HUB24 revealed it signed 105 new licensee agreements during the last financial year, as it reports an underlying NPAT of $10.1 million, up 49% on FY19.

It also reported that its revenue had lifted 37% compared to the previous financial year, to hit $74.3 million, while the underlying EBITDA for the group lifted 60% to $24.7 million.

HUB24 had $18.5 billion in funds under administration as of August 21, with volatility and negative market movement during the 2H20 impacting $1.1 billion of FUA. The annual impact of market volatility was $600 million.

Commenting on the results, HUB24 managing director Andrew Alcock said the group remained focused on investing for future growth.

"HUB24 has delivered strong results in FY20 with record annual net inflows of $4.95 billion, a 60% increase in group underlying EBITDA to $24.7 million and a fully franked final dividend of 3.5c per share," he said in an ASX announcement.

"We've achieved this in the context of COVID-19 without receiving any government or third-party concessions. Our business is well-positioned for further growth and we would like to thank our customers, team and shareholders for their continued support."

In addition to the 105 new licensees, HUB24 also revealed 441 advisers started using the platform during the financial year, an increase on 27.1% compared to the previous period. The platform also added another 108 managed portfolios to the platform during the year.

"Whilst net inflows were softer in April, as advisers adjusted to the COVID-19 environment, momentum improved towards the end of the year with the company achieving net inflows of $4.95 billion for FY20," HUB24 said.

"Given the ongoing opportunities for growth the company remains focused on investing for the future and delivering on strategic objectives."

Operating expenses increased by 18% to $36.2 million during the period, an increase driven by hires in sales and distribution, as well as recruitment to HUB24's Innovation Lab and IT development team.

Revenue for its platform alone lifted 37% to $74.3 million during the financial year, despite challenging market conditions.

This was driven by an increase in trading volumes (resulting in higher transaction fee income) as well as higher client cash balances on the platform (which resulted in higher cash account income).

This cushioned the impact of the RBA's cash rate cuts during the second half of the year, HUB24 said.

Its underlying NPAT was impacted by several one-off items, HUB24 said, including a $1 million impairment following the strategic decision to no longer providing technology hosting services to new clients.

It also included a restructuring cost of $1.8 million in respect of a change in trustee and implementation of MIS to streamline its IDPS and superannuation managed portfolios.

The platform also put out a forward guidance of a FUA range of $28-$32 billion by 30 June 2022, which it says will be driven by continued strong net inflows.

HUB24 also announced it had appointed a former Westpac executive as its chief financial officer and joint company secretary, commencing September 7.

Kitrina Shanahan has nabbed the role, after most recently serving as the chief financial officer of Westpac's insurance business. Prior to this, she worked as a deputy chief financial officer at BT Financial Group.

Shanahan has previously worked with Macquarie Group in Sydney, as well as Cargill Investor Services and Citi Bank in London.

Read more: HUB24WestpacKitrina ShanahanAndrew AlcockASXBT Financial GroupCargill Investor ServicesCiti Bank
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