Disciplined execution leads to strong results and provides solid foundations for growth

Insignia Financial (ASX:IFL) today announced underlying net profit after tax (UNPAT) for the year ended 30 June 2022 (FY22) of $234.5 million, an increase of 59% on FY21. Statutory net profit after tax (NPAT) in FY22 was $36.8 million, including discontinued operations.

Commenting on the result, Insignia Financial Chief Executive Officer, Renato Mota said, “We delivered strong financial outcomes from the disciplined execution of our strategic priorities, and particularly from realising the benefits of the MLC acquisition.

“We experienced a 59% uplift in UNPAT, a marked turnaround of $3.1 billion improvement in platform flows (on a proforma basis), and integration is expected to be achieved 18 months ahead of plan.”

Results overview

• UNPAT $234.5 million, up 59% on FY21.
• Gross margin of $1.48 billion (ex-AET), up 102.8%, driven by acquisition of MLC, growth in funds under management and administration (FUMA) and realisation of synergies.
• NPAT $36.8 million for the full year ended 30 June 2022.
• Turnaround in platform flows continues with $3.1 billion improvement in flows up on prior year on proforma basis.
• Ex-ANZ Aligned Licensees have achieved target break-even on annualised basis.
• FY22 synergies of $124 million exceeded target of $100-120 million:
  • In period synergies of $78 million reflected in full year FY22 result.
  • $218 million synergy run rate target to be largely achieved by end 1H23.
• Sale of AET executed for $135 million, with completion expected by end of CY2022.
• Final dividend of 11.8 cents per share fully franked, payable on 29 September.
• Achieved enterprise carbon neutral status in FY22, in line with ESG strategy.

Outlook

Against the backdrop of a growing superannuation sector and the largest intergenerational wealth transfer in history, Insignia Financial is well-positioned to deliver quality outcomes for clients and shareholders.

Capitalising on these structural tailwinds, the organisation will broaden the wealth proposition to address the growing demands across life stages, and enhance its product suite, supported by leading technology capabilities.

Mr Mota commented, “Our results demonstrate we are pursuing the right strategy and implementing it with focused and accelerated execution. Across all three businesses, we are realising our competitive advantage by leveraging scale and expertise, and delivering growth through simplification.

“Our transformation process has fundamentally changed our business, and we have built strong foundations to take advantage of the opportunities we see ahead.

“We will use our voice and scale to advocate for, and help shape, the industry to improve access to affordable financial help, guidance and advice for Australians.”

Mr Mota concluded, “We are building a business that is relevant, resilient and poised to deliver financial wellbeing for all Australians.”

Read a copy of the full ASX announcement