Record first-half financial result and upgraded earnings guidance
MA Financial Group Ltd (“the Group”; ASX: MAF) is pleased to present its financial results for the six months to 30 June 2021 (1H21).
- Underlying earnings per share (EPS) up 92% on 1H20 to 16.3 cents; statutory EPS up 61% to 10.0 cents
- Assets under management (AUM) up 21% on 1H20 to $6.1 billion
- 1H21 net fund inflows of $506 million, well up on $158 million in 1H20
- Lending business achieving scale, 160% growth in loan portfolio since 1H20
- Record first half Corporate Advisory revenue, up 16% on 1H20
- Maiden interim dividend of 5 cents per share reflects strong capital position
- Increased FY21 guidance, with Underlying EPS expected to be up 20% to 30%1 on FY20.
MA Financial Group today announced a 1H21 result highlighting a period of record growth across its broad operating platform. The first half was characterised by significantly increased business activity levels as the Group returned to a strong growth positioning. Significant growth in Assets under Management (AUM) supported by strong net client inflows, material loan portfolio growth, and record 1H Corporate Advisory revenue underpinned the record result.
Underlying revenue of $102.7 million was up 52% on the 1H20 result of $67.4 million, supported by strong growth across all business units. Asset Management grew underlying revenue by 94% on 1H20 driven by a 28% increase in base fees, solid transaction and performance fees and positive mark to market movements. MAF’s Lending platform is beginning to show the benefits of emerging scale and investment in people and technology. Corporate Advisory & Equities benefited from an upswing in M&A activity and completion of large restructuring mandates.
Underlying EBITDA was up 78% on 1H20 to $38.2 million. The Group’s focus on balancing attractive operating margins and profitability with continued investment in people, technology and broadening our platform continues to deliver.
The Board declared a maiden fully franked interim dividend of 5 cents per share. This reflects the Group’s strong capital position and consistency of earnings underpinned by the ongoing growth in revenues that are recurring in nature. The Group is targeting a combined full year dividend in excess of FY20 and towards the upper end of its target payout range of 25-50% of Underlying EPS.
Joint CEOs Julian Biggins and Chris Wyke said:
“We are pleased with the broad-based growth across the business during the half. The benefits of our long-term investment across the operating platform continues to deliver outstanding results. In particular, the strong and growing inflows into our Asset Management funds are a result of many years of investment in our distribution platform and investment strategies.”
“Our Corporate Advisory & Equities business has benefited from an improving transaction environment and its pipeline continues to build. The business has also benefited from key strategic hires during the period that have already executed on significant transactions.”
“We are very excited in the potential of our Lending platform. The increasing scale and ambition of our activities in this space has led to the creation of a new operating division. Substantial investment across multiple lending platforms provides significant opportunities for growth.”
“The strength of our people and platform combined with our robust balance sheet has MA Financial Group well positioned to continue its strong growth momentum.”
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1. This forecast is subject to market conditions, deal completion rates and timing, no material regulatory changes and a gradual transition away from existing COVID-19 related restrictions as FY21 progresses.