Steadfast Group had been studying options to expand further into the London market. It has done it through the 100% acquisition of H.W. Wood Limited. This would provide an impetus for additional international growth opportunities.
Steadfast Group Limited (ASX: SDF)
Steadfast Group Limited (ASX: SDF) has delivered a solid performance in FY24, continuing its remarkable growth trajectory since its 2013 listing. Over this period, the company has achieved consistent growth in fully franked dividends and a notable increase in share price from $1.15 at listing to $5.50, expanding its market capitalization to approximately $6 billion from $535 million at IPO. This growth reflects Steadfast’s proven business model and disciplined approach to capital management and acquisitions. For the fiscal year ending June 30, 2024, Steadfast reported an impressive 21.8% increase in underlying net profit after tax (NPAT) to $252.2 million, translating into a 16.2% increase in underlying earnings per share to 23.4 cents. Statutory NPAT, which includes non-operating items, also saw a rise to $228.0 million, up from $189.2 million in FY23. Shareholders benefited from this performance with a fully franked final dividend of 10.35 cents per share paid on September 24, 2024. The total dividend for FY24 increased by 14.0% to 17.1 cents per share, fully franked, representing a 75% payout ratio based on underlying NPAT. These results underscore Steadfast’s commitment to shareholder returns, supported by a conservative capital management approach and a disciplined balance sheet with a gearing ratio of 20.2%, well within the Group’s maximum mandate of 30%.
Strategic acquisitions remain a core component of Steadfast’s growth strategy. In FY24, the Group completed 48 acquisitions for a total investment of $457.8 million, including notable acquisitions such as ISU Group in the U.S. and the underwriting agency, Sure Insurance. These investments have been accretive, contributing to Steadfast’s ongoing revenue growth and expanding its global footprint. The company is on track to execute $300 million in acquisitions in FY25, funded by debt and free cash flow, further building on its established strategy of accretive growth. Steadfast’s underlying revenue increased by 18.9% to $1.7 billion, while underlying earnings before interest, tax, and amortization (EBITA) rose by 22.7% to $528.5 million. The strong financial performance reflects solid execution across Steadfast’s business model, driven by a capable executive team, the strength of its equity-owned businesses, continued pricing improvements by insurance partners, and robust organic growth. The Steadfast Australasian Network delivered gross written premium (GWP) growth of 12.1% to $13.0 billion, fueled by both higher sales volumes and premium rate increases from strategic partners. Furthermore, the Steadfast Client Trading Platform (SCTP) processed $1.4 billion in GWP, a 20% increase from FY23, supporting further efficiencies and scale benefits across the network.
In addition, Steadfast’s underwriting agencies achieved $2.3 billion in GWP, up 13.4% from FY23, with growth underpinned by increased volumes and insurer-driven premium rate hikes. With an established platform and continued focus on acquisition, organic growth, and operational excellence, Steadfast remains well-positioned to deliver long-term shareholder value. The company’s FY24 results demonstrate the strength of its growth strategy, as Steadfast continues to scale its operations and create sustainable value for its shareholders.
Source: Company’s Report
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