The platform provider generated underlying net profit of $35.9 million for the year, while revenue increased 18.6% from fiscal 2018 to $98.7 million. .
EBITDA was $52 million, up 22.9 percent from the previous year. Platform revenues amounted to $96.3 million, up 18.3 percent.
The group’s funds under administration (FUA) increased by 29.9 percent during the year to $23.3 billion, while funds under management (FUM) increased by 38.7 percent for reach $1.1 billion.
Netwealth earned $4.3 billion in net FUA inflows, up 4 percent from the previous year.
Netwealth has grown significantly over the year, increasing its workforce from 34 to 271 people. It now manages 71,424 member accounts, up 15 percent, with 2,579 financial intermediaries, an increase of 13.6 percent compared to the 2018 financial year.
The entries of 308 new financial intermediaries accounted for about a quarter of the increase in FUA during the year.
The FUM managed account as of June 30 was $2.8 billion, an increase of 50.4 percent from the previous year.
Managing directors Michael and Matt Heine noted a boom in Netwealth’s investor-led portfolio service.
“While our retirement products lead the market and have seen strong growth, we have also seen significant growth in our Investor Directed Portfolio Services (IDPS or wrap account) which now represents approximately 60 percent of our FUA and 70 percent of our annual net income. “, declared the two men.
Netwealth’s market share increased by 2.5 per cent in the 12 months to March, becoming the largest provider of specialist platforms, according to a major Trusts, Platforms and Wraps report.
It plans to maintain its position in the market by increasing its investments in technology, particularly in terms of functionality, features and infrastructure, as well as by developing new revenue streams.
Netwealth expects the number of advisers switching platforms following the royal commission to continue to rise, and says it is well placed to benefit.
Chairman Jane Tongs also commented on the royal commission in her letter to shareholders, saying it presented an opportunity for the supplier.
“Some of the findings have had a positive impact for Netwealth and led to an acceleration in the number of advisors from leading wealth management institutions who can now use our services,” Ms Tongs added.
She added that the platform provider had conducted an internal review, resulting in rectification fees for customers and legal costs of $1.1 million.
Net profit for the period attributable to members was $34.2 million, up 64.7 percent from the previous year, although the 2018 figure included a one-off cost of $8. $7 million linked to ASX listing.
Netwealth’s profit before tax attributable to members was $50 million, an increase of 71.6 percent.
Earnings per share were 14.8 cents, up 24.4 percent.
The fully franked 2019 final dividend, payable on September 26, was 6.6 cents per share, compared to 5.38 cents the previous year.
