The Hub24 Ltd (ASX: HUB) share price is soaring after the financial services provider released its FY23 full-year results, including an almost 50% boost to its final dividend.
The Hub24 share price is the third-strongest S&P/ASX 200 Index (ASX: XJO) riser of the morning.
Hub24 shares opened at $30, up 7% on yesterday's close, and shot to an intraday high of $32.30, up 15.2%.
The ASX financial share is now trading at $32.15, up 14.7% for the day so far.
Hub24 share price among ASX 200 top risers on Tuesday
Here are the highlights for FY23:
- Underlying net profit after tax (NPAT) of $58.8 million (up 64% on FY22)
- Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $102.4 million (up 45%)
- Statutory NPAT of $38.2 million (up 160%)
- Total funds under administration (FUA) $80.3 billion (up 23%)
- Fully franked final dividend of 18.5 cents per share (cps) (up 48%)
- Full-year dividend of 32.5 cps (up 63%).
The final dividend of 18.5 cents per share is a 48% increase on last year's final dividend of 12.5 cents.
Hub24 has grown its annual dividend from 4.6 cps in FY19 to 32.5 cps in FY23.
Despite this impressive growth, the full-year FY23 dividend represents only a small yield of 1.03%.
Hub24 will pay the final dividend on 13 October.
What else happened in FY23?
HUB24 reported underlying platform EBITDA of $85.1 million (up 37%) and underlying tech solutions EBITDA of $21.8 million (up 91%).
Its FUA comprised platform FUA of $62.7 billion (up 26%) and portfolio, administration, and reporting
services (PARS) FUA of $17.6 billion (up 11.1%).
Platform FUA increased to $64.5 billion as at 17 August 2023.
Although platform inflows fell in FY23, Hub24 said its inflows were "industry-leading in the context of ongoing market volatility and uncertainty in the macroeconomic environment".
Net inflows for FY23 were $9.7 billion, down 17% on FY22.
The number of active advisers using the Hub24 platform increased to 4,011, up 15%, with 113 new distribution agreements signed.
In FY23, Hub24 announced a Heads of Agreement with Equity Trustees Limited (EQT) to provide custodial platform administration and technology solutions for their clients.
The deal involves approximately $4 billion in FUA transitioned over an 18-month period.
The deal was announced in a market update on 18 April, boosting the Hub24 share price by 2.36%.
What did management say?
HUB24 managing director Andrew Alcock commented:
The HUB24 Platform has achieved market-leading net inflows, increased market share and continues to be recognised by both advisers and the industry as Australia's Best Platform.
The acquisition of myprosperity will enhance our Group capabilities, further consolidate our market-leadership position and provide opportunities to continue to deliver innovative products and solutions that create value, efficiency and choice for financial professionals and their clients.
What's next?
Hub24 has revised its platform FUA target to a range of $92 billion to $100 billion for FY24 (excluding PARS FUA).
The previous FUA guidance was $80 billion to $89 billion.
Hub24 share price snapshot
The Hub24 share price is up 21% year to date.
This is a major outperformance over its peers, with the S&P/ASX 200 Financials Index (ASX: XFJ) down 1.5%.
The ASX 200 is up by 2.2% year to date.
