Steadfast Group Ltd (ASX: SDF) shares are on form on Thursday and storming higher.
In morning trade, the ASX 200 stock is up 3% to $6.48.
This follows the release of the insurance brokerage company's full year results.
Image source: Getty Images
ASX 200 stock higher on strong FY 2024 results
- Underlying revenue up 18.9% to $1,676.2 million
- Underlying EBITA up 22.7% to $528.5 million
- Statutory net profit after tax up 20.5% to $228 million
- Underlying net profit after tax before amortisation (NPATA) up 20% to $302.4 million
- Fully franked final dividend up 15% to 10.35 cents per share
What happened during the year?
For the 12 months ended 30 June, Steadfast delivered an impressive 18.9% increase in underlying revenue to $1,676.2 million. Management notes that this was driven by a hardening market and solid volume growth in FY 2024.
Things were equally good for the company's earnings with underlying EBITA growing 22.7% to $528.5 million. This reflects EBITA organic growth of 12.5% from the continued uplift in premiums by insurers and increased volume, as well as acquisition growth which contributed 10.2%.
The ASX 200 stock's underlying NPATA was up 20% to $302.4 million and statutory net profit after tax rose 20.5% to $228 million.
This allowed the company's board to declare a fully franked final dividend of 10.35 cents per share, which is up 15% over the prior corresponding period. Combined with its interim dividend of 6.8 cents per share, this brings its full year dividends to 17.15 cents per share. This is an increase of 14.3% year on year.
Management commentary
The ASX 200 stock's managing director and CEO, Robert Kelly, commented:
I am pleased to report that FY24 continues our year-on-year record of accretive growth and profits since listing in August 2013. These results are the consequence of the strategic execution of our proven business model, the depth and strength of our executive team, strong trading performance of our equity-owned businesses, accretive acquisitions made during the year, continued price increases by insurers and focus on organic growth within our businesses.
Outlook
Management is guiding to underlying EBITA of $590 million to $600 million in FY 2025. This represents an increase of 11.6% to 13.5% year on year.
In addition, it advised that underlying net profit after tax is expected to increase 12% to 16%, and underlying NPATA is expected in the range of $340 million to $350 million.
This is based on the assumption of insurance premiums increasing 7% to 9% and $300 million of acquisitions throughout FY 2025.
