Positive earnings and profits in SFG's first full year
SFG Australia has reported positive earnings and revenue growth in a financial year that followed the effective merger of Shadforth Financial Group Holdings and Snowball Group on 26 June 2011.
Underlying net profit after tax (which excludes one-off costs related to the acquisition) grew 6 per cent to $28.6 million, earnings were up 7 per cent to $41.9 million, underlying earnings per share grew 3 per cent to 3.93 cents and net operating revenue was up 2 per cent to $118.3 million, according to results posted on the Australian Securities Exchange.
Results were reported on a pro forma rather than statutory basis to provide a more meaningful overview in light of the merger, the group stated.
The increases were driven by a "sound organic result" from each of the group's businesses, material revenue, expense synergies following the merger and tuck in acquisitions completed, SFG stated.
The group derived $6.3 million in synergies due to post merger integration, and said it was on track to achieve $10.5 million in synergies per annum from 2013 onwards.
Funds under administration fell 5 per cent to $9.3 billion and funds under advice dropped 7 per cent to $10.8 billion on the back of poor share market performance, the group stated.
Funds under management grew 18 per cent to $4.4 billion, largely as a result of the launch of the Strategic Fixed Interest Trust during the year.
SFG also announced the acquisition of Perth-based insurance broking business Parkside Insurance Brokers.
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