Sequoia Financial Group (SEQ) H2 2024 earnings summary

Executive summary

• Achieved strong FY24 results despite operational disruptions from a 249D notice, with significant growth in revenue, profit, and dividends.

• Completed sale of Morrison Securities, driving a substantial increase in NPAT and enabling a 7.0cps fully franked dividend.

• Streamlined structure from four to two divisions, integrated two acquisitions, and executed a share buyback of 4.3% of shares.

• Continued focus on capital management, organic growth, and selective bolt-on acquisitions.

Financial highlights

• Revenue rose 26% year-over-year to $124.6m, driven by organic growth in Licensee and Adviser Services.

• Operating profit (normalised EBITDA) increased 88% to $8.7m; operating cash flow up 69% to $4.8m.

• NPAT surged to $24.0m, up 1,012% year-over-year, reflecting gains from discontinued operations.

• Fully franked dividends of 7.0cps declared, with a franking credit balance of $21m.

• Net cash position of $16.8m and no bank debt at year-end.

Outlook and guidance

• Targeting organic revenue growth and further operating profit margin expansion in FY25.

• Committed to increasing fully franked dividend payout ratio towards 90% of operating profit after tax.

• Selective use of share buybacks to enhance shareholder value.

• Focus on cross-marketing, technology investment, adviser growth, and bolt-on acquisitions in both core divisions.