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.
AUTHOR
Staff Writer
Recommended for you
In this new episode of The Manager Mix, host Laura Dew speaks to Nick Paul, institutional portfolio manager at MFS Investment Management to delve into everything small and mid-cap equities.
In this episode of Relative Return, host Laura Dew chats with Kellie Wood, head of fixed income and deputy head of fixed income and multi-asset at Schroders Australia, to discuss why fixed income is returning to favour after a 12-year wait.
In this episode of Relative Return, host Laura Dew speaks with Michael Hunstad, deputy chief investment officer and chief investment officer of global equities at Northern Trust Asset Management, to debunk myths around index investing.
In this episode of Relative Return, host Maja Garaca Djurdjevic chats with Robin Tsui, APAC gold strategist at State Street Global Advisors, to discuss gold’s role as a diversifier in portfolios.
