• Net Inflows: $281 million from aligned dealer groups in FY 2024.

• Funds Under Administration: Increased from $3,027 million in FY 2023 to $3,349 million in FY 2024, reaching $3,668 million as of July 2024.

• Platform Revenue Potential: Additional $1 million revenue expected in FY 2025 from increased funds.

• New Platform Launch: Auxilium platform with $102 million as of June 2024.

• Funds Management Average Funds: Grew from $4.8 billion to $5,340 million.

• Funds Management Revenue Potential: Additional $2.4 million revenue expected in FY 2025.

• Financial Planning Offices: Expanded to 48 offices with 80 financial advisers.

• Operating Revenue Growth: Increased by 10% in the last financial year.

• EBITDA Growth: Increased by 16-17% in the last financial year.

• Net Profit Growth: Increased by 17% in the last financial year.

• Dividend Yield: 39.3% franked dividend in the last year.

• Funds Under Management, Advice, and Administration (FUMAA): Grew by 80% over the last five years.

• Warning! GuruFocus has detected 1 Warning Sign with BPTH.

Release Date: August 15, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Fiducian Group Ltd (ASX:FID) reported strong net inflows of $281 million from aligned dealer groups, indicating robust business growth.

• The company's average funds under administration increased from $3,027 million in FY 2023 to $3,668 million in July 2024, suggesting potential for increased revenue.

• Fiducian's platform is competitive with cutting-edge technology, enhancing its attractiveness to advisers.

• The launch of the Auxilium platform, targeting the IFA market, offers a low-cost product with market-leading services.

• Fiducian's funds management business saw growth in average funds from $4.8 billion to $5,340 million, with potential for additional revenue generation.

Negative Points

• The company faces challenges in penetrating the market with the Auxilium platform due to established competitors.

• There is a risk of market rotation affecting performance, particularly with a tilt towards technology and India, which are at cyclical peaks.

• Fiducian's financial planning business has a significant portion of funds in external platforms, which may not easily transition to Fiducian's platform.

• The company experienced a reduction in staff due to natural attrition following the acquisition of PCCU, which could impact service levels.

• Fiducian's growth strategy is conservative, potentially limiting rapid expansion compared to more aggressive competitors.

Q & A Highlights

Q: How is Fiducian Group winning new external customers for the Auxilium platform? A: Inderjit Singh, Executive Chairman, explained that while it's challenging due to established competitors, Fiducian is making inroads by modifying software and systems to meet customer demands. The company is actively engaging with clients and advisers to grow the business, and Singh is optimistic about Auxilium becoming a significant revenue generator in the future.