Key highlights
- Successful capital raising with Placement and Share Purchase Plan raising $17.5
million, heavily oversubscribed by both institutional and retail investors. The Share
Purchase Plan proceeds were received in January 2016 - Transitioned nine new Fund Services clients (including a new custodian client) onto the
Unit Registry Service with $2 million in incremental annual revenue - Fund Services strong transition pipeline will potentially generate additional incremental
annual revenue of $5 million over the next 18 months - Platform Services FUA exceeding $3.25 billion with net funds flow of $116 million for
the quarter - Platform Services launched its new digital advisor platform LUMINOUS. The new
platform has been well received by existing and new clients and delivers significantly
enhanced functionality, positioning it well for accelerated growth in the intermediated
channel - New adviser registrations have exceeded 150 post the LUMINOUS rollout
- Negative operating cash flow of $950k for the quarter was impacted by up-front
transition costs associated with the new Fund Services clients, the weak share market
conditions (with no performance fees earned) and higher working capital associated
with Fund Services - Completed the acquisition of Super Managers Australia (SMA), expanding OneVue’s
capabilities in the fast growing superannuation administration sector - New four year debt facility with ANZ Bank to finance the SMA acquisition.
OneVue completed a successful share placement raising $12.5 million in December 2015 which closed heavily oversubscribed by institutional investors. There was a Share Purchase Plan announced which subsequently raised $5 million and also closed oversubscribed.
The strong support from shareholders puts OneVue in an excellent position to support the considerable momentum in the business. Cash at the end of the quarter on the balance sheet was $18.4 million. Negative operating cash flow of $950k for the quarter, was mainly due to up-front transition costs on new funds services clients, the weak share market conditions (with no performance fees earned) and higher working capital.
The Fund Services business continues to scale bringing new clients on board with nine new clients transitioned onto the unit registry service representing over $2 million in incremental annual revenue run rate which will in turn be reflected in the financials for the second half of the financial year. These transitions included the addition of another key custodian in the market and have added scale and operating leverage driven by high levels of automation.
Fund managers added during the quarter included two new managers, China AMC and Cor Capital, where the business was sourced from a RE-led sales process.
Fund Services will continue to deliver a material pipeline of new transitions which will be executed over the next 18 months. The transition pipeline will potentially generate an additional incremental $5 million in annualised revenues.
The acquisition of Super Managers Australia, which has now been renamed OneVue Super Services (OVSS), expands OneVue’s capabilities into the fast growing superannuation administration sector. OVSS has long standing administration clients with FUA in excess of $1.1 billion and more than 22,000 members.
The Platform Services business launched its industry leading new platform LUMINOUS late in the previous quarter. Initial market feedback has confirmed high levels of interest in Luminous and its enhanced functionality and real-time systems which position it well for further growth in the intermediated channel.
Funds Under Administration (FUA) grew to $3.25 billion at the end of December despite the overall market decline in the quarter. Net funds flow (being funds inflow less funds outflow) of $116 million were up on the prior quarter ($94m).
Ash Fenton
Chief Financial Officer and Company Secretary
t: +61 2 8823 2550