MA Financial Group Limited is pleased to present its financial results for the 12 months to 31 December 2024:

Operational highlights

• Record annual fund inflows, with $2.7b of total capital raised. Gross inflows of $2.2 billion, up 27% on FY23, plus an additional $500 million of institutional committed capital 
• Assets under Management (AUM) up 12% on FY23 to $10.3 billion
• Asset Management recurring revenue margin increased to 1.61% in 2H24, slightly ahead of guidance
• Finsure managed loans up 26% on FY23 to $139 billion, as broker market share continues to grow
• MA Money loan book grew 155% on FY23 to $2.1 billion. Became profitable in 2H24, slightly ahead of expectation. Net interest margin (NIM) expanded to 1.4% in 2H24
• Corporate Advisory fees up 16% on FY23 to $50 million, with market conditions gradually improving
• In advanced stages of finalising commitments for the remaining $500 million in the initial $1bn target for the Real Estate Credit partnership with Warburg Pincus
• Underlying Earnings (EBITDA) headwind from growth investment spending anticipated to slow from $13 million in FY24 to $10 million in FY25, primarily focused on US Private Credit platform
• Underlying EPS is anticipated to be materially higher in FY25 than FY24, with earnings skew to 2H expected to continue in FY25.

Financial results

• Underlying revenue of $306.6 million up 14% on FY23
• Underlying recurring revenue up 7% on FY23, representing 62% of total Underlying revenue
• Underlying EBITDA of $87.1 million, up 7% on FY23
• Underlying EPS of 26.1 cents, up 1% on FY23. (Statutory EPS up 46% to 26.0 cents)
• Fully franked final dividend of 14 cents per share, payable on 20 March 2025. FY24 dividends of 20 cents per share, fully franked, in line with FY23.

Strong growth momentum across all business divisions 

MA Financial today announced its financial result for FY24, highlighted by Underlying recurring revenue growth, record Asset Management fund inflows, improved transactional activity, ongoing growth in Finsure and accelerating loan volume growth for MA Money. MA Financial is performing strongly, with positive momentum across each of the Group’s business divisions resulting in 35% EPS growth from 1H24 to 2H24. 

Underlying revenue increased by 14% on FY23 to $306.6 million, supported by growth right across the MA platform. 

• Asset Management revenue was up 8%, driven by strong growth in Private Credit funds and improved transactional activity in 2H24
• Lending & Technology revenue was up 36%, as MA Money’s growth accelerated and Finsure continued to rapidly grow its managed loans and the number of brokers using its technology platform
• Corporate Advisory & Equities revenue was up 15%, as activity levels improved in 2H24

Underlying EBITDA of $87.1 million was up 7% on FY23. Expenses were up 17% reflecting the Group’s investment into strategic growth initiatives. The Group’s substantial investment into scaling MA Money is now adding to Underlying net profit after tax (NPAT). Growing the Group’s United States based Private Credit business together with investment into brand awareness of MA Financial remain important strategic initiatives. Excluding investment spend, expenses were up 10%, largely driven by broad inflationary pressures. 

The benefit of this investment in growth was seen in 2H24 as MA Money delivered a small profit after being a $4.1 million Underlying EBITDA headwind in 1H24. MA Money is growing rapidly as demonstrated by its 123% Underlying revenue growth in the six months from 1H24 to 2H24. 

FY24 Underlying NPAT of $42.1 million and Underlying EPS of 26.1 cents were both up 1% on FY23, impacted by a 38% increase in net interest expense, as the Group refinanced debt maturities with two successful public note issuances in FY24, worth a combined $110 million. 

The Board has declared a fully franked final dividend of 14 cents per share, taking the FY24 dividends to 20 cents per share, in line with FY23. Since listing at $2.35 per share in 2017, MA Financial will have paid to its shareholders an aggregate of $1.12 per share in fully franked dividends. 

Joint CEOs Julian Biggins and Chris Wyke said: “We are very pleased with the strong momentum witnessed right across our business in the second half of 2024. Our Assets under Management and Loan books continue to grow rapidly and the transactional environmental is slowly improving after a difficult period. 

Underlying EPS in FY25 is expected to be materially higher than FY24. We believe that the Group is in great shape and ready to deliver strong earnings growth into the future.”