AUB Group releases FY22 results

AUB Group Limited has released its FY2022 results. The ASX200 listed company that operates a network of brokers and underwriters across Australia and New Zealand reported a net profit after tax (NPAT) of A$74 million from continuing operations, up 22%. The company said the profit came primarily from strong organic growth in Australian Broking and Agencies. However, profits in NZ were down 15%.

“FY22 has been a challenging year for our partners and clients with the ongoing COVID-19 pandemic, major flooding events in Australia and uncertain geopolitical and macroeconomic environments,” said CEO Michael Emmett (pictured above). “This performance underlines the strength and resilience of the business and a commitment to deliver on our shareholders’ growth ambitions.”

The company’s media release said AUB Group acquired the firm 360 Underwriting and restructured the agencies division and reported a more than 40% growth in underlying revenue.

“Australian Broking continued to grow strongly,” said Emmett. “BizCover performed well, growing pre-tax profit by 24.7%.”

The release said international expansion and below expectation performance in intermediated channels meant overall growth was slower.

Emmett said in New Zealand, “the majority of our businesses” performed in-line with expectation.

“However, under-performance in BWRS, our largest equity broker and ongoing investment in our core New Zealand technology project led to a 15.3% decrease in pre-tax profit for the division,” he said

AUB Group’s underlying earnings per share (EPS) increased to 96.70 Australian cents, up 21%. The board announced a fully franked final dividend of 38 Australian cents per share, a slight decrease.

The release said the firm expects to deliver FY23 net profits in the range of A$86 million to A$91 million, or between 16.2% and 23% growth. This outlook excluded Tysers and the cost of any debt funding from this acquisition.