1H22 Highlights
-- Consolidated Revenue rose by 51% from $52.4m to $79.1 m
-- Operating Profit (EBITDA) rose by 38% to $5.5m
-- NPAT increased from $1.7m to $2.6m
-- NPATA increased from $2.2m to $3.3m
-- Operating net cash flow pre-tax (excluding client moneys) improved by 30% to $5.9m
-- Morrison Securities average monthly number of contract notes increased by 59%
-- Morrison Securities funds on chess sponsored holdings increased from $2.8bn to $4.1bn
-- Equity Markets group revenue increased by 88% from $21.7m to $40.8m
-- Professional Services group revenue increased by 113% from $2.2m to $4.7m
-- Direct Investment group, under a restructure, increased revenue by 14% from $0.9m to $1.0m
Overview
Sequoia Financial Group Limited (ASX: SEQ) (Sequoia or the Company) is pleased to release its results for the half year ended 31 December 2021 (1H22). The 1H22 results were significantly higher than 1H21 and the 15% revenue growth we had budgeted for FY22. This growth is very pleasing, and it gives us a great deal of confidence around the viability and sustainability of our unique and evolving business model.
The Board have approved an Interim Dividend of 0.5 cents per share payable in March 2022, which represents 25% of NPAT. We also wish to upgrade our previous guidance that the FY22 EBITDA is likely to be the equivalent of 10 cents per share.
Outlook
Our longer-term objectives remain as follows:
-- To lead the market in the provision of affordable high quality services to advisers, accountants and licensees.
-- To increase group revenue towards $400M by FY 2025
-- To maintain operating profit margin (EBITDA) at 8%.
-- To provide services to at least 1,000 advisers and 3,000 accountants by 2025.
We thank our shareholders for their ongoing support and look forward to delivering consistently strong results over the coming years.
For more information, download the attached PDF.
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