Euroz Hartleys Posts 87.7% Profit Surge, Declares 5.5c Fully Franked Dividend

Strong Financial Performance

Euroz Hartleys Group Limited (ASX – EZL) has delivered a standout financial result for the year ended 30 June 2025, posting a net profit after tax of AUD 10.3 million. This represents an impressive 87.7% increase compared to the prior year, underscoring the company’s successful execution across its core wealth management and stockbroking operations.

Revenue grew by 10.6% to AUD 98.7 million, buoyed by a 7.2% rise in brokerage income and a 13.9% increase in underwriting and placement fees. Wealth management fees also contributed strongly, increasing 12.8% year-on-year. Despite a slight 5.9% dip in corporate advisory revenues, the overall top-line momentum reflects Euroz Hartleys’ diversified revenue streams and operational leverage.

Growing Funds Under Management and Dividend Boost

Funds under management (FUM) climbed 14.4% to AUD 4.45 billion, a key metric highlighting the firm’s growing client base and asset retention capabilities. This growth is underpinned by the company’s focus on adviser succession planning and a strong team culture, which management believes will sustain organic FUM expansion in coming years.

Reflecting confidence in its financial position and future prospects, Euroz Hartleys declared a fully franked final dividend of 3.5 cents per share, bringing the full-year dividend to 5.5 cents per share, up from 4.75 cents in FY24. The company’s net tangible assets per share increased slightly to 49.8 cents, and it continues to operate with zero debt, maintaining a robust balance sheet.

Strategic Outlook and Risk Management

Executive Chairman Andrew McKenzie highlighted the company’s strong team-based culture and improved market share across business segments. He expressed optimism about the outlook, citing a positive Western Australian economy and favorable commodity prices as tailwinds. The firm remains focused on increasing recurring revenue streams and leveraging its adviser network to drive sustainable growth.

Euroz Hartleys also detailed its comprehensive risk management framework, addressing market, credit, operational, cybersecurity, and regulatory risks. The company continues to invest in ESG initiatives, including carbon footprint tracking and community partnerships, reinforcing its commitment to sustainable business practices.

Audit and Governance

The independent auditor, KPMG, identified the valuation of goodwill and indefinite life intangible assets as a key audit matter, given the significant judgments involved. The audit concluded with no impairment identified, supporting the carrying values reported. The company’s governance framework remains strong, with a stable board and executive team driving strategic execution.