Steadfast announces FY16 underlying NPATA growth of 45%

MARKET RELEASE
24 August 2016

Steadfast announces FY16 underlying NPATA growth of 45% and provides underlying NPATA guidance of $85m to $90m for FY17

Steadfast Group Limited (“Steadfast”) (ASX: SDF) announces its full year results for the 2016 financial year which show strong revenue and earnings growth.

FY16 vs FY15 financial highlights
•Underlying revenue of $459.5m, up 54%
•Underlying EBITA of $129.6m, up 43%
•Underlying NPATA of $82.0m, up 45%
•Underlying Cash EPS of 11.00 cents per share, up 12%
•Gross written premium placed by Steadfast Network Brokers of $4.5b, up 4.2%
•Final dividend (fully franked) of 3.6 cents per share, up 20%
•Statutory NPAT of $73.5m, up 75%

Managing Director & CEO Robert Kelly commented “We are pleased with the solid performance of our brokers, agencies and complementary businesses in a flat pricing environment and have progressed with initiatives to improve their top and bottom line performance."

“The acquisitions made in FY15 overall are performing in line with expectations, with the two transformational agency acquisitions performing ahead of expectations. Steadfast Underwriting Agencies now contribute 45% of our earnings, compared to 18% two years ago."

“There are two new strategic initiatives that we have been working on this year which we believe will generate upside to our Network and to the Group’s profitability. The first is the Steadfast Client Trading Platform. This platform operates on the Virtual Underwriter (Steadfast’s online market platform) and is expected to deliver improved product, service and efficiency with a panel of strategically aligned insurer partners. The second is the Steadfast Underwriting Agencies London ‘super’ binder, which rationalises and consolidates our Lloyd’s market placements into a single binder with a select number of carriers."

“Based on a continued flat pricing environment and no material acquisitions, we expect underlying NPATA of $85 million to $90 million for FY17. The majority of this expected growth is organic and includes projected returns from the two new strategic initiatives."

Full Market Release: Part_1.pdf
FY16 Appendix 4E and the 2016 Annual Report: 01770584.pdf
FY16 results investor presentation: Part_3.pdf
FY16 Appendix 4G and the Corporate Governance Statement; Part_4.pdf
Dividend/Distribution - SDF: 01770597.pdf

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