Netwealth delivers dividend hike, strong FUA growth
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.
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.