In morning trade the shares of financial services software provider Hub24 Ltd (ASX: HUB) have surged higher by 6.4% to $5.00 following the release of its quarterly business update.
Here are the main highlights from the report:
- Quarterly retail gross inflows of $475 million for the second quarter, up 18% on the prior corresponding period (pcp).
- Retail funds under administration of $4.15 billion at the end of the quarter, up 75% on the pcp.
- On course to deliver its maiden full year net profit before tax.
- 10 new distribution agreements signed during the quarter and 47 new advisers from 30 existing licensees now using the platform.
- The acquisition of Agility Applications is now complete. Integration for joint clients underway.
According to management a key driver in the strong quarterly performance was the utilisation of the HUB24 platform by independently owned licensees.
Approximately 63% of net inflows came in through the HUB24 branded platform, with the company's 12 white label clients accounting for the remaining 37% of retail inflows.
As HUB24 is an award-winning investment and superannuation platform, it isn't a surprise to see a growing number of independently owned licensees utilising it.
The state-of-the art technology delivers a fully integrated service that helps users track and manage their investment and superannuation assets. No doubt the addition of an international share trading option during the quarter further boosted its appeal.
Should you invest in HUB24?
There certainly is a lot of choice in the industry for investors to choose from. Companies like Class Ltd (ASX: CL1), Praemium Ltd (ASX: PPS), and Bravura Solutions Ltd (ASX: BVS) have all grown strongly and are appealing investments.
Whilst my preference at this stage would be an investment in Class or Praemium, HUB24 is certainly still a worthy option for investors with strong growth prospects.
But as these companies trade on high multiples I would suggest investors limit their holding to just a small part of their portfolio.
