The Moelis Australia Ltd (ASX: MOE) share price spent a day in the green today after the company released an investor presentation and operational update.
Moelis shares are trading up 3.9% at $5.58 as the market close draws near.
Let’s take a look at what’s behind the Moelis share price increase today.
Moelis operational update
In today’s release, the financial services company reported strong net fund inflows and a significant increase in assets.
Recapping the results from its first four months of trading in FY21, Moelis reported strong net fund inflows of $340 million, up $115 million on the prior corresponding period.
It grew its portfolio of assets under management by 7% to $5.8 billion and settled on four new hotels worth a combined $135 million, that were exchanged in FY20.
The company has been granted a retail Australian Finance Licence (AFSL2) and launched its first two retail credit funds. Moelis also hired 5 new executives in its corporate advisory branch, including 2 new managing directors.
Looking ahead
Moelis is forecasting bright results for the company’s future, given it currently has more than $300 million of new real assets under due diligence for new and existing funds.
The company’s management reiterated its expectation that FY21 underlying earnings per share (EPS) will increase between 10% and 20% on FY20, with the prediction that it will closer to the 20% mark.
Overall, it’s been a sharp rise for the Australian company, which started operating in Australia in 2009 and was achieving revenue of $60 million by its seventh year of operation. Its corporate advisory network now spans 18 countries..
The group is proposing to change its name to MA Financial this year. The Moelis board believe a brand transition as necessary given its expanding financial services profile.
Moelis share price snapshot
The Moelis share price is moving closer to doubling its $2.99 value of 12 months ago, rising 81% in this period. It’s also added 18% since 2021 began.
The company’s turnaround has been significant, given that as recently as February this year its 12 monthly performance was in the red after being hammered during the COVID-19 pandemic.
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Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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