SelfWealth Ltd (ASX:SWF) Announces H1 2025 Financial Results
Financial Performance
SelfWealth Ltd (ASX: SWF) reported a 4% increase in revenue for the half year ending 31 December 2024, reaching $14.1 million. The company achieved a net profit after tax (NPAT) of $0.4 million, down 75% compared to the previous corresponding period. The underlying earnings before interest, tax, depreciation and amortisation (Underlying EBITDA) decreased by 63% to $1.3 million. Despite these declines, funds under administration rose by 15% to $11.6 billion, showcasing continued trust from users.
Operational Highlights
SelfWealth’s trading revenue saw a significant increase of 27.5%, amounting to $4.4 million, attributed to higher brokerage fees in equity exchange markets. The total number of trades reached 406,000, a 9% rise from the previous year. Active trader numbers remained steady at 128,900. Despite a decline in interest income earned from customer cash, the gross profit margin improved, indicating solid operational performance.
Acquisition Proposal
The company entered a scheme implementation deed with Bell Financial Group, proposing to acquire 100% of SelfWealth shares for $0.25 each. SelfWealth’s Chair Christine Christian AO described the offer as compelling, underscoring its alignment with shareholder interests. A shareholders’ meeting to vote on the proposal is anticipated before the end of March 2025.
Executive Comments
Craig Keary, Chief Executive Officer of SelfWealth, remarked, “Our focus during the period has been on transforming into a customer-led growth business by providing superior customer service.” He noted the achievement in trading revenue and customer retention during this period of change. Christian added, “This financial outcome is commendable, demonstrating sustained profitability despite increased investment in our transformation program.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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