FY21 financial highlights
▪ Underlying revenue of $899.9m, up 8.9%
▪ Underlying EBITA of $262.7m, up 17.6%
▪ Underlying NPAT of $130.7m, up 20.2%
▪ Underlying EPS (NPAT) of 15.1 cents per share (cps), up 18.8%
▪ Final dividend (fully franked) of 7.0 cents per share (cps), up 16.7%
▪ Total dividend (fully franked) of 11.4 cents per share (cps), up 18.8%
Steadfast Group acquired insurance broker Coverforce for $411.5 million in a deal that will be fully funded through an institutional placement and a scrip consideration. The $200 million institutional placement will be raised at an issue price of at least $4.35 a share.
The $217.8 million scrip consideration will be issued to the vendors of Coverforce and will be escrowed until after the release of Steadfast’s 2022 financial year results.
Steadfast Group continues to provide insurance brokers with the opportunity to unlock the capital that has been built up over many years. Steadfast was the natural acquirer of Coverforce which is one of Australias largest insurance brokers, said Steadfast managing director and chief executive Robert Kelly.
The merger of Coverforce into Steadfast represents a unique opportunity to further strengthen Steadfast as the largest general insurance broker network and largest group of insurance underwriting agencies in Australasia.
The combination of both businesses is highly complementary with exceptional strategic and cultural alignment. Coverforce is an established insurance broker that has consistently delivered double digit revenue growth rates, excellent operating efficiencies and consistent market leading margins.
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