Profits rose 27 per cent from the previous financial year while net flows across all IOOF platforms increased 65 per cent.
IOOF chief managing director Christopher Kelaher said while this year’s results did not include the acquisition of SFG Australia , first announced in May, he expects the additional $13.8 billion in funds under advice will significantly improve IOOF’s “scale, organic funds flow and earnings profile in future years”.
“This important acquisition, combined with a higher starting base for funds under management in this financial year, provides the solid platform IOOF requires for continued growth,” said Mr Kelaher.
IOOF noted, however, that the acquisition will also carry “integration and cultural alignment risk”.
The financial services company said it will manage this risk “through comprehensive integration planning and collaborative implementation led by experienced senior executives and managers from both parties”.
IOOF said it has a long-term strategy of pursuing growth through acquisitions and will continue to pursue acquisitions within the wealth management sector on an opportunistic basis.
