It’s an enviable record no other listed company can match. For more than 120 years, through major conflicts and economic upheaval, this diversified investment house has always kept shareholders top of mind, not missing a beat on the dividend front since listing in 1903.
APRA-regulated funds, especially profit-for-member funds, have had a good innings during the accumulation phase. It’s proving a different story in the decumulation phase with a growing number of members demanding a far more nuanced service.
HUB24 caps off stellar 2024 with higher dividend
For shareholders in HUB24 (ASX:HUB), a leader in the wealth management technology space, 2024 has been a landmark financial year.
They have watched the share price more than double to close on Tuesday at $74.99, while the fully franked final dividend of 19.5 cents to June 30, 2024, when added to the interim 18.5-cent payout, represented a 17 per cent gain compared with financial 2023.
This total dividend equated to a distribution of $31 million, representing 46 per cent of the company’s underlying net profit after tax (NPAT), in alignment with its target payout range of between 40 per cent and 60 per cent.
In addition, HUB24 conducted an on-market buy-back program, returning another $12 million to shareholders. The company’s capital management strategy aims to balance reinvestment in growth with consistent shareholder returns.
That HUB24 has become a sharemarket favourite – it is now firmly ensconced in the S&P/ASX 100 index – is not surprising.
In the 2024 financial year, it reported a 17 per cent increase in revenue, reaching $327.3 million, driven by record net inflows of $15.8 billion to its platform. The company’s total funds under administration (FUA) passed $100 billion, reflecting a 30 per cent growth.
Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 15 per cent to $118 million, while the underlying NPAT climbed to $67.8 million, also a 15 per cent increase.
Over the past four years, HUB24 has achieved a compound annual growth rate (CAGR) of 57 per cent in FUA and 42 per cent in group revenue.
In a statement, the company said that its investment in innovation and market leadership had helped underpin these results. These investments include advancing technology, strengthening infrastructure and expanding product offerings such as the integration of capabilities from acquisitions such as myprosperity, a leading provider of client portals for accountants and financial advisers.
The company’s total shareholder return (TSR) has outpaced market benchmarks, achieving a four-year CAGR of 51 per cent compared with 11 per cent for the S&P/ASX 200.
The company aims to grow its platform FUA to between $115 billion and $123 billion by 2026 via organic growth, large client migrations and sustained market leadership in platform technology.
Andrew Alcock (pictured), managing director of HUB24, told shareholders that the 2024 performance underscored its commitment to delivering superior shareholder returns while investing in the future of wealth management.
“With record dividends, a strong TSR and a clear growth trajectory based on a commitment to reinvest in the business, we’ve firmly consolidated our position as Australia’s best platform and are committed to empowering better financial futures for more Australians.
“As a result of our focus on delivering innovative products and solutions and customer service excellence, we’ve achieved industry-leading and record platform net inflows and increased market share.”
He added that HUB24 had made a strong start to 2025, reporting record net inflows of $4 billion in the first quarter. With a robust balance sheet, including $58 million in net cash at June 30, 2024, HUB24 was well equipped to capitalise on emerging opportunities.
