HUB24 platform offers long term growth
15/09/15 closing share price: $2.090
52 week high: $2.200
Most recent dividend: -
Annual dividend yield: -
HUB24 is a managed accounts platform provider that operates in a fragmented industry with good long-term growth prospects.
HUB24 is a financial services company listed on the Australian Stock Exchange and offers a comprehensive range of investment options, with transaction and reporting solutions for all types of investors - individuals, companies, trusts, associations or self-managed super funds.
The case for buying shares in HUB24 (ASX: HUB) is based on the company's ability to keep costs relatively fixed while growing funds under management, either in line with or ahead of the broader personal investments market.
As evidenced by the 2014-15 results, it has been doing exactly this, with management now expecting a transition to positive monthly cash flows in the first quarter of the 2016 financial year.
This appears to be predicated on further strong growth in funds under management towards a target of over $3.0 billion by December 2016 and $8 billion to $10 billion by the end of the decade.
Disclosure: HUB24 is held within the Fat Prophets Concentrated Australian Share and Small/Mid-Cap Models.