For personal use only
'22
ANALYST AND
INVESTOR PACK
for the half-year ended 31 December 2021
For personal use only
Arithmetic inconsistencies are due to rounding
For personal use only
1
CONTENTS
1 | Financial highlights 1HFY22 | 2 |
2 | Market overview and outlook | 3 |
3 | Review of financial results | 10 |
4 | Segment results | 19 |
5 | Balance sheet | 21 |
6 | Cashflow | 23 |
7 | Glossary | 24 |
8 | Corporate Directory | 25 |
HUB24ANALYST AND INVESTOR PACK FOR THE HALF-YEAR ENDED 31 DECEMBER 2021
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For personal use only
1. FINANCIAL HIGHLIGHTS 1HFY22
TOTAL GROUP | GROUP | GROUP | GROUP COST TO | |||
INCOME | UNDERLYING EBITDA1 | UNDERLYING NPAT2 | INCOME RATIO | |||
$81.6m | $29.7m | $14.2m | 63.6% | |||
£72% | £80% | £103% | 1HFY21: 64.5% | |||
FULLY FRANKED INTERIM DIVIDEND | DILUTED EARNINGS PER SHARE | |||||||
7.5 cents per share | 11.86 cents | |||||||
1HFY21 DIVIDEND: 4.5 CENTS PER SHARE | £27% | |||||||
£67% | ||||||||
PLATFORM NETFLOWS $6.7b Ÿ116%3 | ||||||||
PLATFORM FUA OF $50.0b £128%3 | PARS FUA OF $18.3b £97%4 | |||||||
NUMBER OF ADVISORS | NUMBER OF PARS ACCOUNTS | PLATFORM SEGMENT REVENUE | ||||||
3,402 | 8,020 | $77.3m | ||||||
£49% | £33% | £76% | ||||||
All percentage changes shown above are relative to 1HFY21.
- Group Underlying EBITDA from continuing operations up 76% to $29.7 million (1HFY21: $16.9 million). Refer to Note 2.1 for more information.
- Refer to Directors Report for more information on Group Underlying NPAT.
- Custodial FUA Administration Services.
- Non-custodialFUA as Portfolio Administration and Reporting Services (PARS).
HUB24ANALYST AND INVESTOR PACK FOR THE HALF-YEAR ENDED 31 DECEMBER 2021
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2. MARKET OVERVIEW AND OUTLOOK
For personal use
ABOUT HUB24
HUB24 Limited (HUB24, the Group or the Company) is a financial services company that was established in 2007 and is a leading wealth management provider of superannuation and investment platforms, technology and data solutions to the Australian market.
Initial HUB24 products were launched to market from 2010 growing to $1 billion in Funds Under Administration (FUA) in 2014. Since that time, the business has grown to over $68.3 billion in FUA (as at 31 December 2021) and employs 460 people on a full-time equivalent (FTE) basis.
HUB24's head office is based in Sydney and HUB24 provides its products and services across all Australian states and territories.
HUB24 is listed on the Australian Securities Exchange (ASX) under the code 'HUB' with a market capitalisation of approximately $1.90 billion as at 18 February 2022.
OPERATING SEGMENTS AND PRINCIPAL ACTIVITIES
HUB24 operates via two core revenue generating segments, and a Corporate segment as shown in the diagram below:
HUB24 Limited
(ASX: HUB)
Platform | Tech Solutions | Corporate |
HUB24 | Agility Pty Ltd | Group support |
platform | HUBconnect | functions |
Xplore Wealth | Pty Ltd | Strategic |
platform | investments | |
Portfolio | Treasury | |
Administration | functions |
- Reporting Services (PARS)
PLATFORM
The Platform segment comprises the HUB24 investment and superannuation platform (HUB24 Platform), the
Xplore Wealth investment and superannuation platform (Xplore Wealth platform), and its Portfolio Administration & Reporting Services (PARS).
The HUB24 and Xplore Wealth platforms are used by financial professionals to efficiently administer their clients' investments held through a superannuation and investment product under custodial arrangements. In addition, HUB24 also offers PARS,
- non-custodyportfolio service which provides administration, corporate action management and tax reporting services for financial professionals and their clients.
The HUB24 platform offers broad product choice and a market-leading experience for financial professionals and their clients. The HUB24 platform offers broad product choice and a market-leading experience for financial professionals and their clients In the most recent Investment Trends Platform Competitive Analysis and Benchmarking Report, HUB24 was awarded the Best Platform Managed Accounts functionality for the 6th consecutive year and was ranked 2nd place for Best Platform Overall. Additionally, HUB24 was ranked 1st for Product Offering and top 2 in 5 out of 6 functional categories. It serves a growing number of respected and high-profile financial services companies and their clients.
The Xplore Wealth platform, acquired by HUB24 in March 2021, consolidates HUB24's leadership position as a Specialist Platform Provider (SPP) and brings complementary capabilities including managed accounts, superannuation services and PARS capability. Xplore's products and services are used by financial advisers, boutique financial advice businesses, stockbrokers and institutional clients to look after their clients' investment needs.
In November 2020, HUB24 acquired the servicing rights to Ord Minnett Pty Limited's PARS. This acquisition included software, related intellectual property and the transition of an experienced team of 12 FTE.
The PARS capability acquired via the Xplore Wealth and Ord Minnett transactions facilitated HUB24 now being a leader in the non-custodial asset administration segment.
HUB24ANALYST AND INVESTOR PACK FOR THE HALF-YEAR ENDED 31 DECEMBER 2021
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HUB24 Limited published this content on 21 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 February 2022 21:10:06 UTC.