Platform provider Netwealth has reported a full year net profit after tax of $36 million, up 24 per cent from a year earlier, as its net funds inflows and funds under administration continued to climb.
Revenue jumped 15.1 per cent to $98.8 million as disruption grips the investment industry following the banking royal commission and financial advisers migrate to its platform.
Netwealth joint managing directors Matt and Michael Heine are “very confident” in the company’s growth opportunities.Credit:Louise Kennerley
Continued growth in funds under administration (FUA) to $23.3 billion resulted from $5.4 billion in net inflows growth and $1.1 billion in market movement. It expects FUA growth to gather pace to $7 billion in net inflows in FY20.
Joint managing directors Matt and Michael Heine said in a statement the company was "very confident" in its growth opportunities.
"We have a strong pipeline of business, including existing and new wealth management groups transitioning clients onto the platform in FY2020 and beyond," he said.
Netwealth reported a fully franked dividend of 6.6 cents share in the second half (12.1 cents for the full year) payable September 26.
The consensus estimate of analysts was for a dividend of 6.2 cents in the first half.
Investors cheered the news, with the company's shares up more than 5 per cent to $7.30 in early trading.
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