Australian Ethical considers M&A as revenue increases 38%
Australian Ethical has announced a 38% increase in operating revenue and funds under management as it targets a high growth strategy.
Reporting its results to the Australian Securities Exchange (ASX) for the six months to 31 December, 2021, the firm said operating revenue was $35.2 million, up 38% from a year ago.
Net profit after tax (NPAT) was $5.4 million, up 5% from a year ago, while funds under management were $6.9 billion, up 38% from $5 billion a year ago.
The firm’s operating expenses rose 45% to $27.4 million as the firm implemented a “high growth strategy”. This included a number of strategic hires, strong investment in brand and marketing with advisers and expenses related to new product launches, technology initiatives and M&A due diligence costs.
Managed fund flows (ex institutional) increased 129% following strong traction with financial advisers and the firm said it was considering how it could grow its institutional base.
It announced an interim fully franked dividend of three cents per share.
John McMurdo, chief executive, said: “As Australia’s original and leading ethical investors, we are well positioned to capture a significant share of this rapidly-growing market.
“We remain focused on implementing our long-term strategic roadmap to capture the significant opportunities amid growing demand from retail and institutional investors for quality ethical investing solutions.
“We anticipate continued and further investment in our high growth strategy as the strategy continues to gain momentum. With a number of initiatives currently underway, we will continue to deploy resources in strategic growth areas while actively seeking out appropriate M&A opportunities to accelerate our strategic plans.”
AUTHOR
Laura Dew
Recommended for you
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
