Mainstream Group Holdings Ltd (ASX:MAI) has rewarded shareholders with continued growth since its initial public offering (IPO) of shares at 40 cents in October 2015.
The company is a specialist fund administrator for the financial services industry earning recurring revenue from long-term contracts underpinned by growth in wealth management sector.
Its clients are typically fund managers, superannuation trustees, listed companies, family offices and dealer groups.
Mainstream administers 815 funds globally with $138 billion under administration supporting more than 340 clients.
Growth across all financial and operational metrics in FY18
Mainstream continued to show its ability to grow with revenue up 42% on FY17 to $41.8 million and EBITDA up 49% on FY17 to $6.4 million.
NPAT was also up 22% on FY17 to $1.7 million.
Importantly, the business showed its ability to grow organically with funds under administration rising 17%, the majority of which came from existing clients.
Raised $9.5 million in September
Mainstream raised $9.5 million through a private placement of shares priced at 70 cents in September 2018.
Funds will be used to accelerate and support a growth strategy by providing additional regulatory capital, funding a proprietary wealth management platform and expanding US operation.
Notably, the placement received demand for $21 million worth of stock, more than double the placement size.
FY19 off to a strong start
At the FY18 results, Mainstream confirmed it was on track to deliver revenue of $50 million to $55 million and EBITDA of $7.5 million to $9.0 million for FY19.
More recently at its AGM the company confirmed it was on track to meet these FY19 growth targets.
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