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Why is the AUB Group (ASX:AUB) share price rocketing 8% today?

The AUB Group share price is rocketing today, up 8% in early afternoon trading. We look at the company’s latest results.
The post Why is the AUB Group (ASX:AUB) share price rocketing 8% today? appeared first on The Motley Fool Australia. –

A drawing of a white rocket streaking up, indicating a surging share pirce movement

The AUB Group Ltd (ASX: AUB) share price is rocketing today, up nearly 8% in early afternoon trading.

We look at the specialist insurance provider’s financial results for the half-year ending 31 December (H1 FY21) below.

What financial results did AUB Group report for H1 FY21?

The AUB Group share price is leaping higher following this morning’s ASX release, where the company reported an improvement on all its core financial results compared to H1 FY20.

Underlying net profit after tax (underlying NPAT) came in at $30.7million. This is an increase of 44.2% on the $21.3 million reported in the prior corresponding period (pcp).

Reported NPAT of $24 million represented a 44.5% gain on the $16.6 million in the corresponding half. AUB credited both organic and acquisition-driven growth in its Australian Broking division for much of the gains.

Underlying earnings per share (EPS) increased by 43.2% year-on-year to 41.47 cents per share.

AUB Group will pay a 16.0 cent per share (cps) dividend, fully franked, up 10.3% from the 14.5 cps in the prior corresponding period.

Words from the CEO

Commenting on the results, AUB Group CEO, Michael Emmett, said:

1H21 Was an important period for the group during which we were able to demonstrate the benefit of our investment in BizCover, grow broking revenue and improve broking profits across our existing network, agree the sale of Altius to finalise our exit from Health and Rehabilitation Services, strongly progress the implementation of our two key technology platforms, make further strategic investments including in 360 Underwriting and Experien and to continue our strategy to consolidate and scale existing businesses.

These strategic initiatives leave us poised for strong, continued growth in the second half and in FY22, enabling us to upgrade our full year profit guidance.

AUB Group stated it will remain focused on its growth ambitions. The company upgraded its full 2021 financial year underlying NPAT guidance to $63–65 million.

AUB Group share price snapshot

Longer-term shareholders of AUB Group will have nothing to complain about, with shares up 43% over the past 12 months. By comparison, the All Ordinaries Index (ASX: XAO) is up a whisker thin 0.1% in that same time.

Year-to-date the AUB Group share price is up 15%.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why is the AUB Group (ASX:AUB) share price rocketing 8% today? appeared first on The Motley Fool Australia.

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