Euroz Hartleys reports improved profitability and dividend declaration

Euroz Hartleys Group Limited (ASX: $EZL) has reported an overall solid net profit after tax of approximately $5.5 million for the financial year to 30 June 2024. The company also announced a second half dividend of 3 cents per share fully franked, bringing the full year dividend to 4.75 cents per share.

Executive Chairman, Andrew McKenzie, comments on the company's performance and outlook

We are very happy with the performance of our business during the back end of the financial year despite a mostly overall lukewarm market. We strongly believe that our team-based culture is the driving force to our recently improving market share in many parts of our business. Our business has undertaken a very significant re-build during the downturn of the last 2-3 years. Our constant focus on investing into our team, youth, succession and our culture will help to ensure growth and resilience in all aspects of Euroz Hartleys going forward. We are optimistic that our financial outlook and market position has now improved and that our business remains strongly leveraged to a continued solid overall outlook for commodity prices, a positive Western Australian economy and a growing need for meaningful and holistic financial advice. Our balance sheet of $92.3 million of cash and investments at financial year end continues to strongly support our activities, differentiates us from many of our competitors and provides confidence to our significant adviser network and their extensive client base. The best measure of a strong business is the payment of dividends and we are proud that we have now returned $345.2 million in fully franked dividends and $40 million of capital to shareholders across our 24-year history.

Summary of Euroz Hartleys' financial performance and outlook

Euroz Hartleys has reported an overall solid net profit after tax of approximately $5.5 million for the financial year to 30 June 2024. The company announced a second half dividend of 3 cents per share fully franked, bringing the full year dividend to 4.75 cents per share. Despite a slow first 8 months dominated by particularly quiet Equity Capital Market (ECM) activity, the company demonstrated strong operational leverage of its underlying business during a brief improvement in ECM activity. Euroz Hartleys remains focused on increasing its recurring revenues and reported a modest increase in Funds Under Management (FUM) to $3.89 billion. The company's Executive Chairman, Andrew McKenzie, expressed optimism about the financial outlook and market position, highlighting the business's strong leverage to a continued solid overall outlook for commodity prices, a positive Western Australian economy, and a growing need for meaningful and holistic financial advice. Euroz Hartleys also emphasized its strong balance sheet of $92.3 million of cash and investments at financial year end, which continues to support its activities and provide confidence to its significant adviser network and their extensive client base. The company's history of returning $345.2 million in fully franked dividends and $40 million of capital to shareholders was also highlighted as a measure of its strong business performance.