Insurance broker AUB Group Ltd (ASX: AUB) has announced some positive metrics and an upgrade on its FY21 guidance at today’s annual general meeting (AGM). The AUB Group share price rose by 1.25% to $17.94 in early morning trading today amid a broader market rise.
What does AUB Group do? AUB Group is an insurance broker servicing more than one million client policies and 93 partner businesses across more than 600 locations in Australasia. Combined, the company covers more than $3.2 billion in policy premium. The company has three main business lines – broking service, underwriting, and workplace risk management services.
Main highlights from today’s AGM AUB Group reported some positive metrics for FY2020, as well as an upgrade on its guidance for FY21.
Here are the main headline results highlighted from today’s meeting:
- Underlying net profit before tax (NPAT) of $53.4 million, up 15.2% from FY19
- This is on the back of a strong underlying revenue of $578 million, a 6.8% increase
- Underlying earnings before interest (EBIT) margin 28.5%, up by 160bps
- Operating cash flow increased from $17 million to $36 million
- A final fully franked dividend of 35.5 cents per share was paid on 6 October 2020.
Upgrade on FY21 guidance After the strong full year performance and first quarter of FY21, the company has today issued an upgrade on its FY21 outlook. The company says that the underlying NPAT for FY21 will be in the range of $60–$62 million – this represents an upgrade from 25 August guidance of $58.5–$61 million. This new estimate represents growth of 12.3% to 16.1% over FY20.
AUB notes however that “in providing this upgraded guidance, we realise macro conditions remain volatile and uncertain and that it is relatively early in the financial year .”
How AUB Group share price has performed in 2020 The AUB Group share price has increased by more than 50% in 2020. At today’s price of $18.02, the company commands a market capitalisation of $1.3 billion.
The post AUB Group (ASX:AUB) share price higher after upgrade for FY21 appeared first on Motley Fool Australia.
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