What’s with the HUB24 (ASX:HUB) share price today?

The HUB24 (ASX: HUB) share price is trading lower today following its half-year results. Let’s take a look at the company’s performance.

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The HUB24 Ltd (ASX: HUB) share price opened lower this morning following the release of the company’s half-year results for the period ended 31 December 2020.

The financial services provider reported a series of gains in its first-half FY21 earnings before the HUB24 share price opening 1.28% lower at $23.20.

Here are the report highlights and some insight from management.

HUB24 share price opens lower after posting record gains

HUB24 reported a group underlying net profit after tax (NPAT) of $7.5 million. This is 39% higher than what was earned during the first-half FY20.

The group earnings before interest, tax, depreciation and amortisation (EBITDA) also rallied for the period, gaining 41% compared to the 1H FY20, which came in at $16.4 million.

Gross profit was $36.4 million for 1H FY21. This is a boost from the pcp’s gross profit of $32.9 million.

The company’s total funds under administration (FUA) climbed to $31 billion at the end of 1H FY21.

Group operating revenue increased from $52.7 million reported in 1H FY20 to $62.1 million in 1HFY 21, an 18% gain.

Underlying earnings per share (EPS) was 11.7 cents compared to the prior corresponding period (pcp), which was 7.6 cents.

The directors determined a fully franked dividend of 4.5 cents per share for the period ended 31 December 2020. The pcp dividend was 3.5 cents per share unfranked.

Management commentary and outlook

HUB24 managing director Andrew Alcock welcomed the results, saying:

HUB24 continues to set new records with Platform FUA up 39% and underlying EBITDA up 41% on 1H FY20. Our continued investment in innovation and focus on customer service excellence has been recognised this week with the company being awarded Australia’s Best Platform Overall by Investment Trends.

Given the acceleration of our organic growth and the completion of our M&A transactions, HUB24’s growth targets have been upgraded significantly to a target Platform FUA range of $43-$49 billion from $28- $32 billion by the end of FY22.

Looking ahead, HUB24 expects strong net inflows to support the firm’s revised Platform FUA target of $43-49 billion.

The company advised that it believes it can meet this goal regardless of any implications caused by the coronavirus.

HUB24 at a glance

HUB24 is focussed on the delivery of the HUB24 Platform. The platform contains a suite of investment options with the aim of creating value for financial advisers and their clients.

The HUB24 share price has gained 111.9% over the past 12-month period.

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Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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