AUB Group (AUB) H2 2024 earnings summary

Executive summary

• Achieved strong FY 2024 results with underlying NPAT up 32.5% to AUD 171 million and underlying EPS up 21.2% to 156.78 cents, driven by organic growth and acquisitions across all divisions.

• Revenue reached AUD 1.33 billion, up 19.8%, with margin expansion and above-market growth in Agencies and New Zealand.

• Expanded global footprint to 16 countries, serving 1 million clients, and ranked 18th largest insurance broking group globally.

• Completed significant acquisitions, including a 70% stake in Pacific Indemnity, and advanced UK retail strategy with investments in Momentum Broker Solutions and Movo Group.

• FY24 marked the first full year of Tysers ownership, contributing to strong international and agency growth.

Financial highlights

• Underlying NPAT: AUD 171.0 million (+32.5%); Underlying EPS: 156.78c (+21.2%); Dividend per share: 79.0c (+23.4%), payout ratio 52.8%.

• EBIT margin expanded to 34% in FY 2024.

• Organic growth contributed 20.9% to NPAT, with acquisitions adding 17%; offset by 1.5% from divestments and 3.9% headwind from higher funding costs.

• Cash and undrawn debt at 30 June 2024: AUD 471.3 million; leverage ratio 1.28x.

• Full conversion of underlying NPAT to cash, with adjusted operating cashflow exceeding NPAT.

Outlook and guidance

• FY 2025 underlying NPAT forecasted at AUD 190–200 million, representing 11.1%–16.9% growth, with organic growth of 7.2%–10.1% and acquisition growth of 6.7%–9.6%.

• Underlying EPS guidance for FY25: 162.97–183.35c, reflecting full-year impact of increased share count.

• Guidance includes assumptions for Movo acquisition in the second half, with upside or downside risk depending on timing.

• Margin improvement remains a key focus, with medium-term EBIT margin targets on track or being upgraded across all divisions.

• Guidance assumes renewal periods and income split in line with historical experience and specified FX rates.