Hub24’s Shares Surge on Growth Expectations

Hub24’s Shares Surge on Growth Expectations

SYDNEY — Hub24 Ltd.’s shares rose sharply in Tuesday morning trade after its results for the first half of fiscal 2022 came in better than expected.

The Australian specialist platform company’s stock was trading 7.9% higher at A$25.41.

Hub24’s net profit for the six months through December rose 37% to A$8.4 million, while revenue was A$81.6 million, up 66% compared with the same period a year earlier.

Ord Minnett said Hub24’s result looked to be better than other Australian specialist company platform results in this reporting season so far. The broker called out Hub24’s revenue as very strong and well ahead of its own forecasts.

Fellow specialist platform provider Netwealth Group Ltd.’s shares fell sharply last week following its own first-half earnings after disclosing that it had stepped up investment in technology and staff amid a decline in interim profit.

Hub24 on Tuesday said it expected to continue its growth momentum and had updated the target platform funds under administration range to between A$83 billion and A$92 billion for fiscal 2024, an increase from the previous target range of A$63 billion-A$70 billion for fiscal 2023.

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