IOOF (IFL) -6.92% Reported FY19 earnings numbers this morning and the stock was down as a result. They missed on the profit line and they cut their dividend saying “In one of the most challenging years for our company and for the industry, we have focused on the imperatives of stabilising the business, with a view to delivering better outcomes for our clients and our shareholders”
While the result was a miss, the underlying performance of the business was reasonable. Total funds under administration and advice (FUMA) increased while their adviser net promoter score was up +17% versus the industry average which was down. While it’s going to be a long road for IFL and the acquisition of the ANZ Wealth Business was completed at the wrong time, the decision today to cut the dividend, conserve cash, protect the balance sheet and bed down for a challenging operating environment we think is the right one.
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