In an ASX announcement on Tuesday morning, Netwealth announced its full-year results for FY23–24, with the underlying numbers in line with those it reported in its June quarter results last month.

Netwealth reported strong growth in net profit after tax for the financial year, rising 24.1% year-on-year to $83.4 million. Earnings per share increased 24.4 percent to 34.2¢ per share.

On the back of the numbers, the board declared a final fully franked dividend of 14¢ per share, bringing total fully franked dividends of 28¢ per share for FY2024, which the firm says is a 16.7% increase from FY23.

In a joint letter from independent non-executive chairman Timothy Antony and chief executive and managing director Matthew Heine, the pair said a steady decline in global inflation and a recovering capital market had led to strong growth across the wealth management platform market in Australia.

Citing Plan For Life's numbers, the market grew 11.5 percent in the 12 months to March 2024, growing from $982 billion to $1,095 billion.

Also looking at data from Plan For Life, Netwealth said its market share grew by 0.9% to 7.7% as of March 2024.

Netwealth itself saw its assets under administration (FUA) grow by 25.2 percent or $17.7 billion to reach a record $88 billion as of June 30, 2024. It also boasted record gross FUA receipts of $22 billion and net FUA flows of $11.2 billion.

Total revenue increased 18.9 percent for FY2024. to $255.2 million, which Heine and Antony attributed largely to FUA's growth from existing and new clients.

“Our EBITDA margin increased by 1.9% to 48.8% due to strong revenue growth and moderate cost growth of 14.5%. This led to an impressive 23.8 percent increase in EBITDA to $124.7 million,” the pair said.

"Our continued high cash conversion ratio led to a 19.8% increase in operating net cash flow (before taxes) to $127.3 million."

Heine and Antony added that the firm continued to "expand and strengthen many new and important licensee and consultant relationships" in FY24, with client accounts growing by more than 12 per cent.

“Our new business pipeline, including conversion rates, remains strong across all market segments. We are entering the 2025 financial year. well positioned to continue to grow our market share,” they said.

Looking ahead, Netwealth said it is confident in its outlook and future growth opportunities, "which we believe are very significant."

“We have expanded and strengthened our new relationships with consultants and licensees, plus our new business line, including conversion rates, remain very strong across all segments. Several significant wins from new customers began transferring flows to the platform in early FY2025. with $1.2 billion in net FUA inflows successfully transferred in July,” Heine and Antony said.

"We plan to continue our significant investment in our people, product, security and technology capabilities to ensure we capture the significant number of existing and emerging market opportunities that will drive our continued and sustainable profit growth." We expect this investment to result in a small percentage increase in the rate of spending growth in FY2025. compared to FY 2024.'

They also noted that Netwealth is reducing its reliance on third-party systems as it expands the functionality of its platform.

“Our advice delivery strategy multiplies the efforts of our advisors, allowing them to serve more clients as demand continues to outpace supply. Netwealth will provide better practice management, business management tools and data access for consultants and licensees,” they said.

"Netwealth recognizes and innovatively embraces the significant capabilities of emerging technologies, including generative artificial intelligence and machine learning, to improve efficiency, productivity and reporting, and to support advisors and clients in new ways."