Steadfast announces FY16 results

Steadfast Group Limited has announced its full year results for the 2016 financial year which show strong revenue and earnings growth.

FY16 vs FY15 financial highlights:

Underlying revenue of $459.5m, up 54%
Underlying EBITA of $129.6m, up 43%
Underlying NPATA of $82.0m, up 45%
Underlying Cash EPS2 of 11.00 cents per share, up 12%
Gross written premium placed by Steadfast Network Brokers of $4.5b, up 4.2%
Final dividend (fully franked) of 3.6 cents per share, up 20%
Statutory NPAT of $73.5m, up 75%

Managing Director & CEO Robert Kelly commented “We are pleased with the solid performance of our brokers, agencies and complementary businesses in a flat pricing environment and have
progressed with initiatives to improve their top and bottom line performance.”

“The acquisitions made in FY15 overall are performing in line with expectations, with the two transformational agency acquisitions performing ahead of expectations. Steadfast Underwriting
Agencies now contribute 45% of our earnings, compared to 18% two years ago.”

“There are two new strategic initiatives that we have been working on this year which we believe will generate upside to our Network and to the Group’s profitability. The first is the Steadfast Client Trading Platform. This platform operates on the Virtual Underwriter (Steadfast’s online market platform) and is expected to deliver improved product, service and efficiency with a panel of
strategically aligned insurer partners. The second is the Steadfast Underwriting Agencies London‘super’ binder, which rationalises and consolidates our Lloyd’s market placements into a single
binder with a select number of carriers.”

“Based on a continued flat pricing environment and no material acquisitions, we expect underlyingNPATA of $85 million to $90 million for FY173. The majority of this expected growth is organic and
includes projected returns from the two new strategic initiatives.”