Half Yearly Results and Financial Report (incl Appendix 4D)
Sydney, Feb 14, 2022 AEST (ABN Newswire) - The directors of Fiducian Group Ltd (
ASX:FID) are pleased to present their report on the consolidated entity consisting of Fiducian Group Limited ("the Company") and its wholly owned operating entities ("Group") for the half-year ended 31 December 2021.
Review of operations
The financial results for the half-year once again demonstrate the resilience of our business, our ability to manage the uncertainties of COVID-19 through disciplined execution of our business plans enabling us to improve our financial returns and further strengthen our balance sheet.
The half-year to December 2021 saw a return to growth with parts of the economy recovering. Underlying NPAT at $7.7 million for the 6 months ended 31 December 2021 was 16% higher than the corresponding 2020 period. This represents underlying earnings per share of 24.5 cents for the half-year ended 31 December 2021. Underlying NPAT does not include amortisation and therefore gives a clearer picture of the Group's cash generating ability.
Gross revenues were up 20% for the half year driven by volume growth in the FUMAA which increased by 23% during the half year.
During the year, Fiducian announced the acquisition of the financial planning business of People's Choice Credit Union which would strengthen Fiducian's distribution reach in South Australia and Northern Territory adding approximately 5,000 clients, $1.1 billion of Funds Under Advice and 16 financial planners. The operational costs increased during the period due to project related expenses.
We expect that the acquisition will deliver a benefit for shareholders in the medium to long term and management is confident of controlling the expense in future years.
Funds Under Administration (FUAdm)
FUAdm at 31 December 2021 on the Fiducian platforms was $3.17 billion (30 June 2021: $2.88 billion) an increase of around 10% over the last six months. Positive net fund inflows were also experienced primarily from acquisitions made in prior years as the new planners begin to recognise the benefits of the Fiducian process and the value added to deliver client's best interest.
Funds Under Management (FUM)
FUM as at 31 December 2021 was $4.36 billion (30 June 2021: $3.89 billion), an increase of around 12% over the last 6 months.
The growth was largely as a result of our in-house ManageThe-Manager system of investment which though strong investment performance continues to attract the majority of retail funds placed with us. Fiducian Funds have consistently performed well over the medium to long term in their respective categories as we diversify assets through a range of underlying fund managers to reduce risk and volatility.
Over a three year return period the Morningstar Investment Performance Survey which measures the investment returns of Australian and other funds from around the world, ranked the performance to December 2021 of the Growth and Balanced Funds 2nd and 4th respectively out of 173 funds, the Capital Stable Fund ranked 9th out of 107 funds and the Ultra Growth Fund 3rd out of 127 funds. Over ten years to December, the rankings for Growth and Balanced Funds were 2nd and 7th respectively out of 148 funds, the Capital Stable Fund ranked 5th out of 92 funds and the Ultra Growth Fund ranked 3rd out of 101 funds.
For the full half year report, please visit:
https://abnnewswire.net/lnk/740M06FU
To view the Investor Presentation, please visit:
https://www.abnnewswire.net/lnk/51874271
About Fiducian Group Ltd
Publicly listed Fiducian Group Limited (ASX:FID) is a successful end-to-end financial services company in this fiercely competitive sector in Australia. FGL is Australian-owned and operated. FGL provides:
1. Platforms for investment and superannuation
2. Funds management and investment
3. Financial planning and wealth management
4. Technology solutions for financial planners and their clients
Through the vision of founding member Indy Singh (Executive Chairman), the company was established in 1997 and listed on the ASX in 2000. Funds under Management, Administration and Advice (FUMAA) total $11.2 billion as at 31 October 2021.
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