IOOF Holdings Limited (ASX: IFL) has reported its full year results today and they should go some way to appeasing shareholders' concerns after the recent spate of allegations regarding compliance issues.
Here are the highlights from the results announcement:
- Underlying earnings before interest, tax and amortisation (EBITA) up 45% to $246.6 million
- Underlying net profit after tax up 41% to $173.8 million
- Underlying earnings per share increased 13% to 59.9 cents per share
- Full year dividend increased 12% to 53 cps. A final dividend of 28 cps has been declared and will be paid on October 15.
- Net debt of $57.3 million
- Funds under management and advice (FUMA) up 29% to $123.6 billion
- A record $1.7 billion net funds inflow to flagship platforms, up 19% for the year
- Very strong performances from the Financial Advice and Distribution and Shadforth businesses which achieved profit growth rates of 39% and 21% respectively.
The Managing Director Mr Kelaher made the following comments regarding the outlook for IOOF:
"Over the past few years we have significantly increased our scale and diversified our earnings. Industry fundamentals remain positive with strong growth forecast for the superannuation industry, an aging population and increasing requirement for advice. With our strong commitment to quality service and advice we have a strong base to both grow our existing business and pursue new market opportunities."
Buy, Hold or Sell?
With the share price trading around $9 a share, IOOF's stock is trading on a FY 2015 price-to-earnings multiple of 15 times. This is lower than both the market multiple and also below the multiple of peers such as Platinum Asset Management Limited (ASX: PTM) and Magellan Financial Group Ltd (ASX: MFG) which could suggest the stock is a relatively attractive buying opportunity.
