HUB +3.74%: Hit an all-time high of $92.65 after delivering yet another impressive result. It was only four weeks ago we saw a funds under administration (FUA) update that saw the stock jump ~11% in a day with the platform now impressing on revenue and cost-control.
- Platform revenue A$154.2 million, +29% y/y
- Underlying Ebitda A$77.6 million, +41% y/y, 6% ahead of expectations
- FY26 platform FUA guidance upgraded from $123bn to $135bn… current platform FUA ~$99bn
Hub continues to demonstrate a huge amount of operational leverage, increasing platform revenue growth whilst reducing employee headcount verses the prior half. Migrations from established players including Equity Trustees and ClearView highlight the superiority of the platform offering whilst the size (~$11-$15bn) of flows in the next 18 months gives a good indication as to the efficiency of transitions and technology teams to enable FUA to move seamlessly onto platform.
HUB are at the tip of the iceberg tapping into FUA on incumbent platforms such as BT, Asgard and Macquarie as well as retail super funds – the future looks promising given their ability to scale earnings and subdue costs though at eye watering valuations, we can’t justify an entry here.
MM is neutral HUB, the bullish run looks done for now
Add To Hit List
