Euroz Hartleys Group (EZL) H2 2024 earnings summary

Executive summary

• Achieved net profit after tax of $5.47m for FY24, down 41.5% from $9.34m in FY23, with revenue of $89.2m, a 7% decrease year-over-year, reflecting subdued market conditions and lower ECM activity.

• Brokerage revenues rose 17.2% year-over-year due to enhanced trading focus, while ECM revenues fell 12.6% and advisory revenues dropped 79.5% after a strong prior year.

• Funds Under Management (FUM) increased to $3.89b from $3.47b, with recurring revenue growth a strategic focus.

• Paid fully franked dividends totaling $7.8m (4.75cps), maintaining a 24-year record of consistent returns.

Financial highlights

• Net profit after tax: $5.47m (FY23: $9.34m), basic EPS 3.5c (FY23: 5.51c), diluted EPS 3.33c (FY23: 5.25c).

• Revenue: $89.2m (FY23: $95.9m), down 7% year-over-year.

• Brokerage revenue: $29.4m (+17.2%), ECM fees: $33.8m (-12.6%), Wealth management fees: $19.6m (+7.5%), Advisory: $2.3m (-79.5%).

• Cash and investments at year-end: $92.3m; net tangible assets per share: 49c; no debt.

• FUM: $3.89b (FY23: $3.47b), up 12%.

Outlook and guidance

• Optimistic on mid- to long-term prospects, leveraging a positive WA economy and commodity outlook.

• Focus remains on organic FUM growth, recurring revenue, and platform enhancement.

• Continued investment in talent, technology, and operational efficiency to drive future growth.