Hub24 posts $1.8m loss

Hub24 has reported a loss of $1.8 million in net profit after tax for the half-year ending 31 December 2015, down from a loss of $2.8 million for the prior corresponding period.

Hub24 posts $1.8m loss

tlewis

Last Updated: 26 February 2016 Published: 26 February 2016

The loss in net profit marks a 36 per cent improvement when compared with the previous loss of $2.8 million.

Hub24 managing director Andrew Alcock maintained that the company is on a "growth trajectory".

The company experienced growth in funds under administration (FUA), up from $1.7 billion at 30 June 2015 to $2.37 billion as at December 31 2015.

According to the statement, FUA is expected to increase to approximately $3 billion in the second half of FY16, following the completion of a transition with Fortnum Financial Group.

In October 2015, Hub24 announced a white-label partnership with Fortnum, involving the transfer of more than $650 million to Hub24 in the second half of the 2016 financial year.

"Our customer base is continually broadening and we expect ongoing growth as we continue to win further white-label opportunities," said Mr Alcock.

The company's net inflows amounted to $668 million, an 85 per cent increase on the prior corresponding period.

Hub24 experienced a 114 per cent increase in platform segment revenue growth, with direct platform expenses increasing 49 per cent, the statement said.

Moreover, Hub24 also indicated that Hugh Robertson will retire from the board as of 29 February.

"The company wishes to thank Mr Robertson for his significant contribution during a period of both transformation and strong growth," the statement said.