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Steadfast affirms profit guidance, eyes acquisitions

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Steadfast expects to deliver underlying earnings at the top end of a guidance range first announced in August after a solid first quarter.

The diversified broker group expects net profit of $100 million to $110 million for the current financial year from underlying earnings before interest, tax and amortisation (EBITA) of $215 million to $225 million.

Steadfast, which has 480 broker members, posted a net profit of $89 million in the year to June 30 on gross written premium of $6.1 billion.

With increased shares on issue after acquiring IBNA Ltd, the fiscal 2019 guidance equates to growth of 5% to 10% in underlying diluted earnings-per-share (EPS) net profit, Steadfast says.

The forecast excludes the costs of the IBNA acquisition.

Speaking to shareholders at the annual general meeting on Thursday, MD and CEO Robert Kelly said Steadfast has a strong pipeline of acquisition opportunities.