iFast Corporation saw 44.8% y-o-y growth in net profit to a record $30.63 million in FY2021.
Meanwhile, net revenue grew 31.9% y-o-y to $113.22 million in FY2021. In FY2021, 69.5% of net revenue is derived from recurring net revenue and 30.5% of net revenue is from non-recurring net revenue.
The group’s PBT margin increased to 31.6% for FY2021, compared to 29.6% for FY2020.
The group’s assets under administration (AUA) grew 31.5% y-o-y to a record high of $19.0 billion as of Dec 31, 2021. The AUA of unit trusts, its key investment asset class, grew to a record $13.89 billion as at Dec 31, 2021, a growth of 27.5% y-o-y.
For FY2021, the directors are proposing a dividend of 1.40 cents per ordinary share, an increase of 40.0% y-o-y compared to the final dividend for FY2020 of 1.00 cents per share.
The proposed final dividend brings the year's total dividend to 4.80 cents per ordinary share for FY2021, which is 45.5% higher than the total dividend of 3.30 cents per share for FY2020.
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For FY2021, earnings per share on a fully diluted basis increased to 10.67 cents per share from 7.46 cents in FY2020.
Net inflows of client assets remained healthy in 4QFY2021 at $0.76 billion, leading to net inflows of $3.75 billion for FY2021.
By geography, iFast’s Singapore operation is still the major contributor of the group’s net revenue, making up $73.2 million of the $113.22 million figure in FY2021.
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The group’s cash and cash equivalents and investments in financial assets, net of bank loans, increased to $59.29 million as at Dec 31, 2021 from $53.28 million as at Dec 31, 2020. This was due mainly to net cash generated from operating activities in FY2021, partially offset by payments of additional investment in associates, additions of plant and equipment and intangible assets, office leases and dividends paid to shareholders in the year.
Current assets decreased to $154.64 million as at Dec 31, 2021 from $194.60 million as at Dec 31, 2020. This was due mainly to decreases in receivables from uncompleted contracts on securities dealing at the end of the year, partially offset by increases in cash and cash equivalents, trade and other receivables over the year.
Non-current assets increased to $70.21 million as at Dec 31, 2021 from $59.68 million as at Dec 31, 2020. This was due mainly to additional investment in associates, additional deferred tax assets recognised and purchase of plant and equipment in FY2021, purchase of intangible assets including the acquired business rights resulting from the business transfer agreement with DWS Investments Singapore Limited for the transfer of its fund management business relating to its Singapore mutual funds platform, which was completed in July 2021, and some project setup costs incurred for the Hong Kong pension project contract at end of the year.
Net cash from operating activities increased from $41.56 million in FY2020 to $46.53 million in FY2021, due mainly to higher cash generated from operating activities in FY2021 and partially offset by higher income tax paid in FY2021 and working capital movement across quarters.
Moving forward, the group will focus on executing its Four-Year Plan, which includes getting bigger and better, accelerating the growth of its business in Hong Kong, adding digital banking and other capabilities to the so-called "iFast Fintech Ecosystem", and building a "truly global business model", reads a Feb 14 press release.
On Jan 7, iFast announced its intention to acquire the UK-based BFC Bank Limited from BFC Group Holdings.
iFast expects the proposed acquisition to incur some initial start-up losses. Based on the group’s 85% stake in the UK bank, its estimated loss to the group for FY2022 is approximately $4.0 million.
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iFast targets to achieve profitability for the UK bank from 2024.
On Jan 10, iFast conducted a placement of shares to institutional and accredited investors for the purpose of funding the proposed acquisition, raising approximately $103 million from the placement. Additional funds raised from the placement exercise will be used for working capital purposes.
iFast expects its overall business to achieve robust growth in both revenue and profitability between 2021 and 2025, with Hong Kong’s ePension division expected to be the biggest driver from 2023, says the company.
Shares in iFast closed 17 cents down, or 2.67% lower, at $6.18 on Feb 14, but down 25.36% year to date.
Photo: Albert Chua / The Edge Singapore
