Summary of results
| Stock | Generation Development Group Ltd (GDG.ASX) |
|---|---|
| Release Time | 28 Aug 2025, 8:25 a.m. |
| Price Sensitive | Yes |
Generation Development Group Reports Strong FY25 Results
- Underlying NPAT increased 170% to $30.2m
- Revenue grew 191% to $141.3m
- Investment Bond sales of $1.015b, with 57% market share
- Managed Account FUM increased to $29.6b
Generation Development Group (ASX:GDG) has announced its financial results for the full year ended 30 June 2025. The company reported strong performance, with underlying net profit after tax increasing 170% to $30.2 million and revenue growing 191% to $141.3 million. Key contributors to the earnings growth included continued strong performance in the investment bonds business, with FUM growing 33% to $4.4 billion, and the full year earnings contribution from Lonsec Holdings. The company also completed the acquisition of Evidentia in February 2025, which added to the earnings. Funds under management for the company's managed accounts business, across both Lonsec and Evidentia, stood at $29.6 billion as of June 2025, including a 38% increase in Lonsec FUM to $14.8 billion. The Lonsec Research business also performed well, with 64% of new ratings delivered on an on-demand basis, a significant increase from 46% in the prior year. GDG expects to be paying close to the upper end of the maximum earnout amount of $90 million for the Lonsec acquisition. The company remains well-capitalised, with a cash balance of $107 million as of 30 June 2025, and declared a final FY25 dividend of 1 cent per share.
GDG expects to be paying close to the upper end of the maximum earnout amount of $90.0m (on a 100% basis), with the maximum payable by GDG of $55.7m, for the Lonsec acquisition.
GDG is confident that the current sales momentum will continue across both Investment Bonds and Managed Accounts. Investment bonds will benefit from legislative tailwinds from the proposed double tax rate on earnings of superannuation balances above $3m. Lonsec will continue to increase its Research capability while Evidentia will continue to build out new products and enhance its distribution footprint. GDG will leverage its strategic relationship with BlackRock to grow its annuity offering.