Profitability

Selfwealth could be on track to report decent profitability in August.

Management took $4.2m of cost out of the business in 1Q24
Trading volumes on the ASX have rebounded and are now up 14.9% in 2H24 compared to 2H23
Client cash is likely to have stabilised above $400m, as client cash balances seem to correlate with trading activity
The prevailing cash rate is higher in 2H24 (4.35%) compared to 2H23 (3.1-4.1%)
Shares on issue have been reduced by 0.85% so far from the buyback

I think it's conceivable Selfwealth is on a $6m p.a. profit before tax run-rate, and possibly higher, which is pretty strong in relation to its $15m enterprise value.

Bell Financial (ASX:BFG) noted that NPAT for their Jan-June 2024 half will be up 47% due to ‘improved performance in our Retail and Wholesale broking business’

Euroz (ASX:EZL) noted ‘Brokerage income for the four-month period to April 2024 continued its solid trajectory from the December 2023 half year which is a strong underlying measure of the health of our business. During this past four months, Private Wealth brokerage has been trending up while Institutional brokerage revenues are slightly weaker’

Halo (ASX:HAL) noted brokerage revenue in the March 2024 quarter was up 156% on pcp

NZ based retail broker Disallowed had its biggest trading month ever in March 2024