Posts

LOV FY26 strong result--its a NA and European story

 LOV FY26 Result  My Take LOV results calls are often a bit unusual. LOV is really a private company masquerading as a public company. The management plays its cards close to its chest. Blundy controls the company, and management is aligned with him. That is good and bad; disclosure can be frustrating, and transparency can sometimes not be as clear as other companies. The positive is that management has a strong record of adding value, and there has been no real sign of conflict between the major shareholder and the outside shareholders. Incentives are aligned for profit growth. FY26 was one of the results where disclosure was not that great, despite the results being strong. Compared to my expectations, revenue was 1% better, and NPAT was 5% better. Revenues were +18%, and NPAT was +12%; note the difference. There were two negative inputs on NPAT. The first was the Jewells expansion. LOV lost $11m in the FH and provided no full-year numbers, but said losses were about t...
Post a Comment
Read more

HUB24 FY26 result - srtong result and the door could be opening again

 HUB FY26 Result commentary Strong result: 3% higher on my revenue estimate and 8% higher on NPAT. There was a noticeable slowdown in 2H net flows, which raised concerns. Overall revenues up 23%, costs 19% higher and underlying NPAT up 40%. Underlying adds back amortisation. Year-end platform FUM was $139B, a billion less than my estimate, showing the extent of the 2H slowdown, with earnings being better. The problem with net flows was identified as discretionary investments; super continues to remain resilient. Therefore, likely impact of the Budget or cash tightness, with investors moving to cash before making a decision what to do. If the funds permanently leave the platform, it is an issue for HUB. That remains to be seen, with the base case being investors will reinvest the funds at some stage. Overall net flows were $18.9B, but skewed to the FH. HUB ended the year with 9.9% market share, up 1.3% over the year. HUB sees itself going to a high-teens market share and has p...
Post a Comment
Read more