The Selfwealth Ltd (ASX: SWF) share price is moving higher this morning following the release of a very strong full year report for the 2020 financial year (FY20).
The Selfwealth share price is currently trading 9.52% higher up to 58 cents.
Selfwealth's full-year results
The ASX share trading platform has seen astounding growth thanks to the COVID-19-induced volatility of the share market this year. Most notably, the company grew its revenue by an incredible 313%, rising to $8.6 million.
Another important metric to track the company's performance is the number of active traders on its platform. Selfwealth reported an increase of 46,445 traders, which was growth of 235% year-on-year. This puts Selfwealth at number 6 in terms of brokers in Australia, with 6% of all Australian investors using the platform. Also encouraging was the fact that just over 1 in 10 new investors are choosing Selfwealth and the same number are transferring from other brokers.
Selfwealth also saw impressive growth in the amount that clients were trading, which equates to increased revenue for the company. The company's total assets on HIN (holder identification number) rose to $2.52 billion, increasing a huge 124% year-on-year.
Furthermore, the growth has resulted in SelfWealth's first ever quarterly positive cash flow from operating activities during the fourth quarter of FY20. A healthy balance sheet of $5.62 million, no debt and a positive cashflow leave the company in a solid financial state. This is reflected in the Selfwealth share price storming higher today.
Outlook
Looking forward, the company has seen a number of structural changes aid its businesses plans. Firstly, thanks to the global pandemic there has been an increased shift to digitisation, and this along with other COVID-19 tailwinds has seen increased usage of the platform. Wealth creation has also been turned on its head. This is seen as ultra-low interest rates and term deposits are no longer attractive as they were. All these factors look to push customers towards the online broker.
Another exciting area for Selfwealth is there upcoming US trading platform arriving in December. Selfwealth has indicated it intends to become the home for direct equities trading, with a highly competitive fee structure and the ability for Australian investors to invest in the US and Australia, all in the once place. More international markets are set to be added in the future via their partnership with Phillip Capital.
The company has not provided details on specific numbers regarding revenue of cash flow growth, this is likely because of the highly volatile situation in markets mentioned above.
