The Hub24 Ltd (ASX: HUB) share price is up 4.3% in reaction to its release of its June 2019 update.
Hub24 is an Australian financial technology business that creates portfolio management and Superannuation software. Founded in 2007, you can think of Hub24’s software as a way to better manage investments in shares and other assets. HUB24 has a management team with decades of experience within the wealth management industry and in the development of platforms.
Hub24’s June 2019 Update
Hub24 reported that net inflows for the quarter were $979 million, an increase of 32.4% on the June 2018 quarter. Gross inflows for the June 2019 quarter amounted to $1.5 billion.
The fintech’s annual net inflows were $3.9 billion, which was 60.6% higher than the year before. This led funds under administration (FUA) to finish at $12.9 billion at 30 June 2019, which was a rise of 54.3% on the balance at 30 June 2018.
The number of advisers using the Hub24 platform increased to 1,625 at the end of FY19 – an increased of 32.4% Management are expecting further growth of advisers and FUA due to Hub24’s business development pipeline.
Hub24 said it continues to grow at the fastest rate in the industry and was ranked second place for both quarterly and annual net inflows in the latest ‘Strategic Insights’ data.
New agreements have been secured with two large national advice groups, Madison Financial Group and Centrepoint Alliance, adding over 450 advisers. One of Australia’s largest stockbroking and wealth management networks will be launched in the next few weeks.
Another development during the quarter was that Challenger Ltd (ASX: CGF) annuities became available on the Hub24 platform.
Is Hub24 A Buy?
Hub24 is growing at an impressive rate every quarter, but it is priced for a lot of success so I wouldn’t say it looks good value today. It has plenty of potential, but I don’t know if it can beat its competitors and keep growing profit strongly to justify today’s price.
For growth I’d much rather think about the shares in the free report below instead.
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