Investorfirst has seen improving results in the half-year period to December 31, despite reporting a net loss before tax.
Despite Investorfirst recording a net loss before tax for the first half of the financial year of $6,476, the result was still an improvement of eight per cent on the prior corresponding period.
“While the loss for the period is disappointing, we have repositioned the business to focus wholly on the HUB24 investment and superannuation platform and, in the process, have significantly reduced operating expenses,” Investorfirst chairman Bruce Higgins said.
Revenue for Investorfirst was up 50 per cent to reach $4.55 million and cash and cash equivalents reached $10.5 million with no debts.
The results come after Investorfirst divested its stockbroking business to Wilson HTM in order to focus wholly on its HUB24 platform in December.
As part of a non-binding heads of agreement, Wilson HTM agreed to transition its estimated total $1.4 billion of funds under management (as at 31 October 2012) to the HUB 24 platform.
The two groups are developing a client portfolio management and reporting tool using Investorfirst’s HUB24 platform to assist in the management of Wilson HTM’s private client portfolio.
Funds under administration (FUA) on the HUB24 platform at December 31 reached $256 million, up 110 per cent from a previous result at June 30 of $120 million.
At the time of the Australian Securities Exchange (ASX) announcement FUA for the platform had risen to $315 million.
While Investorfirst are taking steps to ensure it will be compliant with the Future of Financial Advice (FOFA) reforms, the company said the platform will be a good alternative to major bank-owned platforms.
“Being a relatively new entrant into the investment platform industry, HUB24 is in the fortunate position of having few legacy arrangements that will require significant change,” Investorfirst said in a statement to the ASX.
“HUB24 can offer licensed dealer groups a ‘FOFA ready’ solution.”
“Directors are strongly of the view that differentiating from institutional competitors through our independence and leading platform technology will attract more financial advisory firms who will commit to adopting the HUB24 platform for their clients.”
Investorfirst has planned a spate of enhancements to HUB24, including direct market share trading functionality and access to live market data, which will be released on March 4.
The enhancements are expected to further increase the adaption of the platform by financial advisers.
