Income Asset Management Group Limited (ASX:IAM) Reports Q2 FY2025 Results
Quarterly Performance Overview
Income Asset Management Group Limited (ASX:IAM) recorded a revenue of $4.0 million for Q2 FY2025. This figure remained steady compared to Q1, demonstrating resilience despite the seasonally slower December month. Total Assets under Administration (AuA) reached $3.9 billion, driven by a 31% year-on-year growth in bond and loan Funds under Administration (FuA), now totalling $2.2 billion.
Client Growth and Revenue Projections
Client account numbers rose to 2,405, reflecting a 38% increase year on year. IAM forecasted potential growth to 3,300 clients by the end of calendar 2025 if current trends persist. The quarter also delivered new FuA of $130 million, suggesting an annualised growth outlook exceeding $500 million.
Strategic Financial Movements
IAM raised $18 million before fees during the period and successfully retired a $10 million debt facility, resulting in savings of $1.2 million in interest costs per annum. Closing cash holdings amounted to $6.5 million, with an additional $1.4 million in bond positions that could increase cash holdings to $7.9 million if liquidated.
Operational Expenses
The Group incurred a net cash outflow of $3.3 million in operating activities, including bond purchases and placement fees. IAM expects these figures to improve once the ongoing cost-reduction efforts and the transition to Perpetual (PCT) as custodian are completed.
Conclusion and Next Steps
For Q3 FY2025, IAM retains a robust pipeline for Debt Capital Markets transactions. The ongoing positive trajectory in client numbers and FuA positions the Group favourably for continued growth into H2 FY2025 and beyond.
Motley Fool contributor Lianne Eastty 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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