The AUB Group Ltd (ASX: AUB) share price is up by 3% to $14.77 at the time of writing, following a positive trading update out of the insurance broker.
What was in the announcement?
According to the announcement, AUB Group had strong June trading results. The company expects underlying net profit after tax for the 2020 financial year to be at the top end of the previously announced guidance range of $52 million to $53 million. This represents growth of 12–14% compared to the 2019 financial year. The announcement was based on unaudited figures.
According to the announcement, AUB Group expects to release its full financial year 2020 results on Monday 24 August.
How has AUB Group performed recently?
AUB Group is an equity-based insurance broker with a network of 93 businesses. It services more than 600,000 clients and over one million policies across more than 450 locations.`
AUB Group has confirmed it will pay an interim dividend of 14.5 cents per share on 3 September 2020, with its final dividend yet to be announced.
In the first half of the 2020 financial year, AUB Group reported underlying revenue of $272.1 million. This was a 5.9% increase on the same period in the 2019 financial year. Adjusted net profit after tax for the first half of the 2020 financial year was $21.3 million, a 25.3% increase on the same period in 2019.
Commenting on the results, AUB managing director and group CEO Mike Emmett said: “I’m pleased by the financial resilience of the business and the financial performance to date. We’re accelerating progress with strategic initiatives and continuing to reduce costs thereby improving the underlying performance of the Group.”
In June, AUB Group was added to the S&P/ASX 200 Index (ASX: XJO) to take its place as one of the 200 biggest companies on the ASX by market capitalisation. The AUB Group’s current market capitalisation is just over $1 billion.
About the AUB Group share price
The AUB Group share price has jumped 64% from its 52 week low of $9.01 reached in April. It has risen 22.86% since the beginning of January. The AUB Group share price has risen 32.6% since this time last year.
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Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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