Pinnacle (ASX:PNI) share price lifts 6% on FY21 results

The company’s net profit in FY21 increased by more than 100% on the prior year.

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Pinnacle Investment Management Group Ltd (ASX: PNI) shares have jumped out of the starting blocks and well into the green from the open today. At the time of writing, the Pinnacle share price is trading 5.87% higher at $14.43.

Today’s gains arrive after Pinnacle released an investor presentation and its FY21 results highlights to the market after yesterday’s close.

What did Pinnacle release?

Pinnacle released the highlights of its FY21 financial results late yesterday, recognising net profit after tax (NPAT) of $67 million. This represented year-on-year (YoY) growth of 108% on the prior corresponding period.

Shareholders also enjoyed a 100% increase in dividends per share, on a payout of 17 cents per share – up from 8.5 cents a year prior.

Further, Pinnacle recognised NPAT of $66.4 million from its affiliates, a 75% YoY increase.

In addition, the firm recognised net inflows of $16.7 billion for FY21, helping to realise a 52% YoY gain in funds under management (FUM) to $89.4 billion.

Pinnacle also highlighted the growth in FUM and inflows from investors “outside of Australia” during the year.

Speaking on the release, Pinnacle managing director Ian Macoun said:

Despite the turbulence in markets and the broader economy during the previous financial year, we made a conscious decision to keep our core capabilities well resourced to enable us to both continue to support the affiliates and to remain well-positioned for further growth.

The Pinnacle share price is running hot today, having jumped almost 10% to an intraday high of $14.96 before partially retreating.

What else did Pinnace report?

Pinnacle also released its corporate sustainability report after the end of play yesterday. In it, the company detailed several progress points achieved throughout FY21 and the vision for FY22.

For instance, Pinnacle established a “sustainability committee” to integrate sustainability practices into its business.

Moreover, it also achieved “carbon neutral certification for FY20 emissions” and transitioned its largest workspace to “100% green energy”.

Pinnacle also made some structural changes throughout FY21 pertaining to its ethical, social and governance (ESG) schedule. Yesterday’s report marks the company’s inaugural corporate sustainability report.

Additionally, with respect to climate change, Pinnacle aligned its own ESG strategy with two key corporate environment and sustainability initiatives, the United Nations’ Sustainable Development Goals, and the Task Force on Climate-Related Financial Disclosures.

Pinnacle Investment share price snapshot

Including today’s gains, the Pinnacle share price has posted a year-to-date return of almost 100%, extending the previous 12 months’ gains to around 163%.

Over the past month alone, Pinnacle shares have climbed around 21% into the green.

The company’s performance has beaten the S&P/ASX 200 Index (ASX: XJO)’s return of around 25% over the past year.

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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