Moelis Australia Ltd (Moelis Australia; ASX: MOE) is pleased to present its financial results for the year to 31 December 2020 (FY20). Key FY20 highlights include:

  • Underlying EBITDA down 5% to $60.5 million, reflecting COVID-19 impacts
  • Asset Management revenue up 10%, supported by 11% growth in AUM to $5.4 billion
  • Corporate Advisory & Equities revenue down 14%, due to COVID-19 disruption and transaction completion timing
  • Underlying earnings per share of 25.1 cents, down 5% on FY19
  • Statutory earnings per share of 18.5 cents, up 19% on FY19
  • Strong balance sheet maintained with $112 million operating cash1 plus $200 million in investment assets
  • Fully franked dividend unchanged from FY19 at 10 cents per share
  • Strong momentum into FY21; Underlying EPS expected to be up 10% to 20% on FY20.

Moelis Australia today announced a FY20 result underpinned by accelerating activity and momentum in the Group’s Asset Management business during 2H20. The Corporate Advisory & Equities business maintained good transaction volumes, however FY20 revenue was impacted by completion timing of large restructuring mandates and reduced M&A activity. The business has emerged from a period of difficult economic and market conditions, resulting from the COVID-19 global pandemic, with a strong platform for growth.

Underlying revenue of $160.1 million proved resilient, up 1% on the FY19 result of $158.3 million. COVID-19 had a significant impact on business conditions during the year, particularly on hospitality and aged care assets managed by MA Asset Management (MAAM). Management acted with caution in limiting new business activity in 1H20 as COVID-19 impacts were assessed. This positioned the business well for a strong rebound as business certainty returned over 2H20, characterised by new fund launches, asset acquisitions and increased fund inflows.

Underlying EBITDA was down 5% to $60.5 million on FY19 due to a 5% increase in expenses arising from investment in platform capabilities largely undertaken in FY19 and one-off costs of approximately $3.0 million associated with the impacts of COVID-19. The decision to preserve these investments through a period of significant uncertainty positions the business well for growth in FY21.

Joint CEOs Julian Biggins and Chris Wyke said:

“We are proud of the commitment, resolve and hard work our team has shown to meet the significant challenges of 2020 and deliver a very solid result.

The operating performance of the business strengthened appreciably as the year progressed and this momentum has been carried into a strong start to 2021.

Going forward our strategy remains unchanged as we continue to look to scale our investment strategies, expand our distribution channels and leverage our specialised capabilities in corporate advisory and equities.

We are optimistic about the momentum across the business and confident about how we are positioned to deliver on our purpose of building long term value.”

Result materials

Moelis Australia ASX Announcement - FY20

2020 Annual Report

FY20 Result Presentation

2020 Corporate Governance

Watch a replay of the FY20 result investor briefing

 

For more information visit the MOE Investor centre