Steadfast tops target with maiden result
After listing on the ASX earlier this month, the commercial insurance broker on Friday reported adjusted profits of $28.1 million, compared with $27.2 million forecast in its prospectus.
The numbers assume that various acquisitions of small brokers, which were only completed this month, have contributed to the bottom line for the full year.
On a statutory basis it posted a $13.4 million loss, after incurring $23.8 million in costs relating to its initial public offering. This is slightly better than the $15.7 million statutory loss forecast in its prospectus.
Gross written premium placed by its network of 280 brokers rose about 10 per cent to $4 billion.
While recent ASX debutante iSelect has suffered a sharp fall in its share price since floating in June, Steadfast has performed solidly.
After a strong debut in which its stock jumped nearly 25 per cent to $1.42 in its first day of trading, it has remained near this level and was trading at $1.40 after the result.
Chief executive Robert Kelly reaffirmed guidance that earnings before tax interest, tax depreciation and amortisation of $60.6 million for this financial year.
Frequently Asked Questions about this Article…
In its maiden ASX result Steadfast Group reported adjusted profits of $28.1 million, slightly ahead of the $27.2 million forecast in its prospectus. On a statutory basis it recorded a $13.4 million loss after $23.8 million of costs related to the initial public offering.
Yes. Chief executive Robert Kelly reaffirmed guidance for earnings (before tax, interest, depreciation and amortisation) of $60.6 million for the financial year.
Gross written premium placed by Steadfast's network of 280 brokers rose about 10% to $4 billion. That growth in premiums suggests stronger underlying revenue momentum across its broker network.
Steadfast had a strong debut, with its stock jumping nearly 25% to $1.42 on its first day of trading. After the result it remained near that level and was trading at $1.40.
The reported numbers assume that several small broker acquisitions, which were only completed this month, have contributed to the full-year bottom line — meaning the results include an assumed full-year benefit from those deals.
The adjusted profit excludes one-off IPO-related costs. On a statutory basis Steadfast posted a $13.4 million loss because it incurred $23.8 million of costs tied to its initial public offering.
The article notes Steadfast has performed solidly compared with some recent debutantes: for example, iSelect suffered a sharp fall in its share price since floating, while Steadfast maintained its strong debut level.
Steadfast's chief executive is Robert Kelly. He reaffirmed the company's guidance for $60.6 million of earnings before tax, interest, depreciation and amortisation, signalling management's continued confidence in the business.
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