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5 Highlights from iFAST’s Full-Year 2020 Results

iFAST Corporation Limited (SGX: AIY), a financial technology company, reported a sterling set of results for the fiscal year 2020 last Friday.

The local fintech company operates a platform for the buying and selling of unit trusts, equities and bonds..

Amid a pandemic that has ravaged the world, the group rose to the occasion and posted an impressive set of numbers.

iFAST experienced an acceleration in the adoption of online trading platforms led to a surge in revenue and profits.

In response, iFAST’s share price has been on a tear.

After nearly tripling from a share price of S$1.03 to S$3.00 in 2019, the fintech firm’s share price has gone on to double again to around S$6.21 year to date.

The Smart Investor was invited to participate in the earnings briefing.

Here are five highlights from the group’s earnings briefing that investors should know.

Soaring net profit
For 2020, net revenue rose 31.7% year on year to S$85.9 million, driven by higher recurring and non-recurring revenue.

A combination of operating leverage and assistance from the government’s Jobs Support Scheme pushed operating profit up 130.6% year on year to S$25.8 million.

The strong performance extended to its net profit, which more than doubled from S$9.5 million in 2019 to S$21.2 million in 2020.

Meanwhile, the group’s balance sheet remains rock-solid with S$53.3 million in cash and investments and no debt.

Operating cash flow more than doubled from S$19.4 million in 2019 to S$41.6 million last year, while capital expenditure inched up slightly to S$12.2 million.

iFAST, therefore, generated free cash flow of S$29.4 million for 2020, a sharp improvement from the S$7.3 million in 2019.

Record-high inflows and AUA
The group recorded a record net inflow of client assets of S$3.2 billion last year.

This strong inflow pushed iFAST’s assets under administration (AUA) to a record high of S$14.45 billion as of 31 December 2020, up 44.5% year on year.

In the fourth quarter alone, net inflows more than tripled from S$268 million to S$847 million.