Budget-trading platform SelfWealth reported its full-year results for the FY21 financial year, with record growth across all key performance metrics.
SelfWealth said it delivered exceptional growth and a record financial performance turbo-charged over the past year as the COVID-19 pandemic accelerated structural changes in the industry, driven by ultra-low interest rates globally and the digitisation of investment markets.
SelfWealth delivered record revenue growth of 135% in FY21, to $18.4 million, up from $7.8 million in FY20. The growth was driven by a 105% increase in Active Traders from 46,445 in FY20 to 95,189 in FY21 and a 147% increase in Annual Trades from 659,131 in FY20 to 1,630,180 in FY21.
Equities Under Administration, including both Australian and US securities, increased 158% from $2.5m in FY20 to $6.5m in FY21, while client cash increased 43% to $523 million, up from $366 million in FY20.
In December 2020, SelfWealth launched its US trading capability, noting that over 29% of total Active Traders added US functionality to their existing ASX portfolios within the first six months. In FY21, international trading revenue generated $1.2m in revenue at higher gross margins than domestic equities.
The strong revenue, combined with cost control initiatives, enabled the company to generate positive operating cash flow for the full financial year in FY21 of $1.1 million.
Highlighting the scalability and the operating leverage of its business model, SelfWealth confirmed gross margins increased from 33.4% in FY20 to 41.4% in FY21 due to significant volume discounts from major suppliers, as well as six months of higher-margin international trade operations. As a result, they are aggressively implementing a strategy to accelerate product development and technology platform capabilities, as well as investing in marketing and data analytics, to increase market share.
In FY22, the company said it will be focused on further developing its data and analytics strategy to better understand customer behaviour and to provide relevant content and educational materials to its members.
SelfWealth also confirmed that the new year has started positively Active Traders increased by over 5,000 in the first six weeks of the year, while total trading volumes recorded in July were higher than each of April, May & June’s monthly volumes.