Fiducian Group (FID) H2 2024 earnings summary

Executive summary

• Three main business lines—platform administration, funds management, and financial planning—contributed positively to FY2024 results, with FUMAA reaching $13.51 billion, up 10% year-over-year due to strong net inflows and market performance.

• Operating revenue increased 10% to $80.8 million, and net revenue rose 11% to $60.6 million compared to FY2023.

• Statutory NPAT rose 22% to $15.0 million, and underlying NPAT grew 17% to $17.7 million year-over-year.

• Double-digit EPS growth (based on UNPAT) achieved in 18 out of 24 years since listing.

• Financial planning expanded to 48 offices and 80 advisers, focusing on quality over quantity, with a target of 150 advisers over the next 3-5 years.

Financial highlights

• EBITDA increased 16% to $26.1 million; underlying EBITDA up 17% to $24.4 million year-over-year.

• Gross margin improved to 75% from 74% in FY2023.

• Basic EPS based on UNPAT rose 17% to 56.3 cents; EPS based on NPAT up to 47.9 cents.

• Full year fully franked dividends totaled 39.3 cents per share, with H2 dividend at 21.1 cents.

• FID share price closed at $7.45 on 8 August 2024, with 1178% total return since June 2012.

Outlook and guidance

• Additional AUD 320 million in platform funds as of July 2024 could generate at least AUD 1 million extra revenue in FY2025 if maintained.

• Ongoing transition of $1.6 billion in external platform FUA to Fiducian's platform underway.

• Focus remains on quality adviser recruitment, technology investment, and selective acquisitions, with potential for accelerating UEBITDA growth as scale increases.