Fiducian sees 7% profit rise

In a presentation to investors on Monday, Fiducian said its statutory net profit after tax had risen 7 per cent to $5.7 million for the first half of the 2021 year.

On a segment basis, the group said its financial planning arm had seen a loss of around $1.2 million for the half-year to December 2020, which had widened from the previous half year’s loss of $916,000.

Fiducian’s funds management business had performed the strongest with a $5.2 million profit before tax for the half year, while its corporate and platform administration arm recorded a $3.8 million profit before tax.

The group said it was focusing on “selective recruitment of salaried and franchised planners aligned to the Fiducian culture driven by quality and expertise”, with 54 per cent of the group’s adviser force made up of franchisees compared with 46 per cent salaried advisers.

Fiducian’s funds under advice grew slightly from $3 billion to $3.4 billion in the six months to December 2020, but advice revenue declined to $9.8 million in the six months to December 2020, compared with $10.2 million in the prior corresponding period.

The group said it was pursuing growth in financial planning through “acquisitions of client books, organic referrals and recruitment of new franchisees to the network”.

Like many of its competitors in the listed mid-tier space, Fiducian added that it saw opportunities to “capture market share from the disintegration of large wealth businesses” and attract breakaway firms from larger dealer groups.