AUB Group Ltd has upgraded its guidance to 16-18% FY20 growth from 8-9% after recording strong 1H20 results, including a 25.3% rise in adjusted net profit after tax (NPAT) on 1H19, to $21.3m.
NPAT was adjusted for increased share capital on issue after the 1-for-7 equity capital raising in November 2018, offsetting costs of $1.6m after tax related to the Austbrokers Canberra fraud in 2018. Consolidated group profit was down 16.3% to $16.6m.
AUB CEO and MD Michael Emmett said the group had benefited from a strong improvement in health and rehabilitation, which had complemented broking and agencies performance.
Australian broking recorded 4.7% rise in revenue, to $187.95m, while earnings before interest and tax (EBIT) was up 6.5% to $47.9m.
NZ broking contributed a 22.9% jump in revenue, to $27.4m and EBIT was up 14.4% to $8.3m. Agencies reported health & rehabilitation revenue growth of 5.2% to $27.5m, and EBIT up 96.9% to $3.35m.
Emmet said the two major buys earlier this month of MGA Whittles and BizCover (Insurance Review, February 17), which were earnings per share accretive, would accelerate AUB Group’s scale, capability and earnings.
He said the upgraded guidance took the acquisitions and the group’s 1H20 “outperformance” into account.