Hub24 share price sinks 7% despite record year

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

The Hub24 Ltd (ASX: HUB) share price is sinking on Tuesday morning.

At the time of writing, the investment platform provider’s shares are down 7% to $22.06.

Why is the Hub24 share price sinking?

Investors have been selling down the Hub24 share price following the release of the company’s fourth quarter update. Although that update revealed a record year of inflows, a sudden slowdown in the final three months appears to have spooked investors.

For the three months ended 30 June, Hub24 delivered platform net inflows of $2.5 billion. This was broadly flat on the prior corresponding period excluding large transitions.

Nevertheless, this couldn’t stop the company from reporting a 31.7% increase in annual platform net inflows to a record of $11.7 billion. And despite negative market movements of $3.5 billion, Hub24’s full year platform funds under administration (FUA) rose 19.9% in FY 2022 to $49.7 billion.

Together with its Portfolio, Administration and Reporting Services (PARS) FUA of $15.9 billion, Hub24 ended the period with total FUA of $65.6 billion.

While this was an increase of 11.8% year on year, it was a disappointing 4% reduction quarter on quarter.

What else happened?

The release notes that the latest Strategic Insights data shows that Hub24 has maintained second place for annual net inflows. Furthermore, at the end of March, its market share had increased to 5.1% from 3.9% a year earlier.

Management advised that a key driver of its growth has been its flexible approach to supporting advisers to create efficiencies in their business. This led to a strong pipeline of new opportunities across all customer segments including large licensee clients, brokers, boutique advice practices and self-licensed advisers. During the quarter, the total number of advisers using the platform grew 13.8% to 3,486.

Another positive was that the recently acquired Class business completed the year with its strongest June quarter since 2019. Management advised that Class Super, Class Portfolio and Class Trust products reported growth in total net accounts.

In addition, Class’ Nowinfinity offering performed well, finishing the quarter with document orders up 4% on the prior corresponding period. Momentum in the Class business is expected to continue into FY 2023.

The post Hub24 share price sinks 7% despite record year appeared first on The Motley Fool Australia.

3 Stocks for Runaway Inflation

As the world suffers price shocks… and the cost of everything seems to be ticking higher…
These 3 ASX stocks could be the answer to runaway inflation. Boasting key qualities companies need to not only survive but actively thrive when costs surge.
Act fast – because in times of inflation, the worst thing you can do is… nothing.

Learn More
*Returns as of July 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OjAKe9s

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s