Fiducian Posts 20% Profit Rise on $186 Million Net Inflows
Fiducian Group has delivered a robust FY2025 half-year performance, marked by strong net inflows and a 23% rise in funds under administration, underpinning solid revenue growth and a confident dividend outlook.
- Funds Under Administration increased 23% to $3.7 billion
- Funds Under Management rose 25% to $5.7 billion
- Net inflows of $186 million from aligned financial advisers
- Underlying NPAT up 20% to $9.9 million
- Half-year dividend declared at 21.9 cents per share
Strong Growth in Funds Under Administration and Management
Fiducian Group has reported a compelling half-year update for FY2025, showcasing significant growth across its core financial metrics. Funds Under Administration (FUAdm) climbed to $3.7 billion as at December 2024, representing a 23% increase over the prior six-month average. Meanwhile, Funds Under Management (FUM) surged 25% to $5.7 billion, reflecting both organic growth and strategic acquisitions.
These inflows were primarily driven by Fiducian’s aligned financial advisers, who contributed net inflows of $186 million in the first half. The company highlighted that nearly all new inflows were invested through its proprietary Fiducian platform and multi-manager funds, underscoring the platform’s central role in Fiducian’s growth strategy.
Financial Performance and Profitability
Financially, Fiducian delivered an underlying net profit after tax (UNPAT) of $9.9 million, a 20% increase compared to the previous corresponding period. Operating revenue rose 14% to $44.3 million, supported by a gross margin of 76% and an underlying EBITDA margin of 31%. The company’s disciplined cost management and efficiency gains helped absorb salary increases, maintaining strong profitability.
Segment-wise, Funds Management generated $12.7 million in revenue with a profit before tax of $8.9 million, while Financial Planning and Platform Administration segments also contributed solidly to the bottom line. Fiducian’s integrated fintech capabilities, including its Fastrack platform and FORCe financial planning software, continue to underpin operational efficiency and client service excellence.
Dividend and Shareholder Returns
Reflecting its confidence in ongoing performance, Fiducian declared a half-year dividend of 21.9 cents per share, consistent with its policy of distributing 60-80% of underlying net profit after tax. The company’s share price has outperformed the ASX All Ordinaries Accumulation Index by over 1200% since 2012, delivering strong capital growth alongside a rising dividend yield.
Outlook and Strategic Positioning
Fiducian’s management emphasized the momentum in net inflows from both salaried and franchised adviser networks, supported by a broad investment menu and advanced reporting capabilities. The company is also expanding its footprint with the Auxilium and Badges platforms targeting independent financial advisers, aiming to disrupt existing disruptors with competitive technology and service standards.
Looking ahead, Fiducian is well positioned to leverage its scale and technology to drive accelerating EBITDA growth. However, the company remains mindful of regulatory developments, particularly around superannuation caps, which could influence future inflows and product demand.
Bottom Line?
Fiducian’s strong half-year momentum sets the stage for continued growth, but investors should watch regulatory shifts and integration of new platforms closely.
Questions in the middle?
- How will proposed superannuation balance caps impact Fiducian’s inflows and product demand?
- What is the potential scale and revenue contribution from the Auxilium and Badges platforms?
- How effectively can Fiducian maintain margin expansion amid rising staff costs and competitive pressures?
