Steadfast Group has ushered in the new week with the announcement not only of its financial results for the full year ended June 30 (FY21) but also of a AU$411.5 million acquisition.
From its AU$55.2 million statutory loss in FY20, Steadfast bounced back with a statutory net profit after tax worth AU$143 million this time around. Underlying net profit after tax also grew, by more than 20%, to AU$130 million.
“Steadfast has delivered a strong FY21 operating and financial performance, demonstrating the strength of our network, platform, and resilient business model in the current environment,” said managing director and chief executive Robert Kelly.
“Management continues to execute on both our organic and acquisition growth strategies and as a result we have delivered a 20.2% increase in underlying NPAT to AU$130.7 million, which is at the top end of our upgraded guidance provided on April 28,2021 of AU$127 million to AU$132 million.”
Kelly partly attributed the result to robust organic growth and higher margins in Steadfast’s insurance broking and underwriting agency businesses. He also cited a continuation of the hardening insurance cycle, as well as the group’s disciplined approach to undertaking accretive acquisitions.
On the acquisition front, it was revealed that Steadfast is snapping up 100% of SME-focussed insurance broker Coverforce for AU$411.5 million. The swoop is scheduled to complete on August 20.
Coverforce’s merger into the wider group was described as “culturally and strategically aligned,” with founder and MD Jim Angelis and his management team to play a key role within Steadfast.
Meanwhile, the Steadfast board declared a fully franked final dividend of AU7¢ per share. The FY21 total dividend stands at AU11.4¢. Both are higher compared to last year’s figures.
