Bell Financial Group Achieves Significant Growth in Half-Year Results
BFG (BFG) Share Update August 2024 Thursday 15th
Bell Financial Group Reports Strong Half-Year Profit and Dividend Increase
Bell Financial Group Ltd (ASX:BFG) has reported impressive financial results for the first half of 2024, showcasing substantial growth in profit and revenue, along with a notable increase in its interim dividend.
Instant Summary:
- Revenue of $138.7 million, an 18.3% increase on the prior corresponding period.
- Profit after tax of $16.6 million, a 50% increase on the prior corresponding period.
- Earnings per share of 5.2 cents, a 49% increase on the prior corresponding period.
- Interim dividend of 4.0 cents per share, fully franked, a 33% increase on the prior corresponding period.
- Funds under advice have grown to $80.5 billion.
- No core debt and $111.5 million net cash as of 30 June 2024.
Financial Performance
Bell Financial Group Ltd (ASX:BFG) has reported a net profit after tax of $16.6 million for the half-year ended 30 June 2024, marking a 50% increase compared to the same period in 2023. The company's revenue for the period was $138.7 million, up 18.3% from the previous year.
Co-CEO Dean Davenport attributed the strong performance to improved results in the Retail & Institutional broking business and ongoing momentum in the Technology & Platforms and Products & Services segments. He emphasized the benefits of the Group's strategy to develop recurring and maintainable revenue streams that complement traditional broking.
Segment Performance
The Retail & Institutional broking business reported a revenue of $90.7 million, a 20.3% increase from the previous year. This segment contributed an underlying profit after tax of $6.3 million, a significant rise from the previous period.
The Technology & Platforms segment saw a revenue of $18.5 million, with a profit after tax of $4.1 million. Despite some anomalies affecting the figures, normalized revenues were up 7.6%, and after-tax earnings increased by 23%.
Products & Services continued to show growth, with revenue reaching $22.9 million and a profit after tax of $6.2 million. The segment's loan book grew to $575 million, and client funds at call increased to $498 million.
Dividend and Balance Sheet
The Board has declared a fully franked interim dividend of 4.0 cents per share, a 33% increase from the previous year. The record date for the dividend is 29 August 2024, with the payment date set for 10 September 2024.
Bell Financial Group maintains a solid cash-backed balance sheet with no core debt and $111.5 million in net cash as of 30 June 2024. The Group's funds under advice have grown to $80.5 billion, reflecting a compound annual growth rate of 8.1% over the past five years.
The strong financial results and increased dividend are likely to positively impact Bell Financial Group's stock price, reflecting investor confidence in the company's growth strategy. The significant profit increase and solid balance sheet position the company well for future growth.
Investor Reaction:
Analysts are expected to react positively to Bell Financial Group's performance, highlighting the company's strategic focus on recurring revenue streams and technological investments. The increased dividend will also be seen as a positive signal to investors.
Conclusion:
Investors should consider the strong performance and strategic direction of Bell Financial Group when evaluating their portfolios. The company's focus on growth and innovation, coupled with a solid financial foundation, presents a compelling investment opportunity.