Generation Development Group delivers $40.7M profit
- Generation Development Group delivered an underlying net profit after tax of $40.7 million for the full year ended June 30, representing a 21% increase from the previous period.
- Despite operational growth, the group's shares fell 14% to $3.30 as rising operating costs pressured profit margins.
- Management attributed the business expansion to record net inflows of $9.7 billion, which expanded total funds under management to $46.5 billion.
Generation Development Group (ASX:GDG) delivered an underlying net profit after tax of $40.7 million for FY26, representing a 21% increase driven by record funds under management expansion.
The performance compared to full-year revenue of $178.7 million, which rose 23% alongside record net inflows across its investment and managed account divisions.
Operating expenses increased 26% to $119.5 million as the group invested in staff, technology, and integration capabilities across its divisions.
The business recorded $50.5 billion in managed account funds under management and $5.95 billion in investment bond funds under management by the end of the period.
Following the announcement, the Generation Development Group share price was down at $3.19.
The group maintains operations across three primary financial services units comprising Generation Life, Evidentia Group, and Lonsec Research and Ratings.
It stated that expanding product coverage to 2,001 researched products and increasing software subscribers to 5,629 continues to support its recurring revenue strategy.
