In a statement, Sequoia Financial Group said it had recorded $1.78 million in net profit after tax for the first half of the 2021 financial year, up 548 per cent from the first half of the 2020 year.
The group, who owns Interprac and also purchased Yellow Brick Road’s and Phillip Capital’s financial planning arms last year, said it had increased the number of advisers operating under its AFSLs by 33 per cent to 403 advisers over the six months to December.
Revenue growth in its wealth business over the half had been approximately 40 per cent, contributing to a 28 per cent rise in consolidated revenue to $52.4 million in the six months to December.
“Throughout 1H21 we have continued strong growth in our key business units, resulting in very strong financial results in our Wealth and Equity Marks arms despite what has been a very challenging operating environment,” the group said.
As well as organic and acquisitive growth in its advice force, Sequoia said it had “acquired more scale in business units that are sub-scale direct to consumer advice businesses, assisting retiring advisers and through the acquisition of the Panther Corp document business completed on 1 February 2021”.
The group said it aimed to lead the market in the provison of services to advisers, accountants and licensees, and achieve in excess of $110 million in revenue by the end of the 2021 year.
Sequoia added it was aiming to more than double its adviser force to over 1000 by June 2025.
Profit per adviser is very small considering the wealth arm is only a part of this business. maybe they need to increase fees ?
Anonymous. Yes that is low. We are assuming all 403 advisers were there for the full 1H 2021 contributing. Be surprised if they all arrived July 1. They have done deals to acquire and will continue to do so. So annual numbers won’t show steady state until deals slow stop. Will need to track cohort by cohort of AR deals to see real profit averages. Cheers
Double it’s adviser force to over 1,000 by June 2025?
At a time when advisers are bailing out, left right and centre.
Could that be possible even if you went for quantity and not quality?
What advisers would want to be in a business with 1,000 others to be serviced and supposedly looked after?
and pushing out smaller unprofitable advisers as well. plus increase in AR’s fees.
On an annual basis that is a profit of 1,780,000 * 2 / 403 = $8,800 per adviser. That is dangerously low.
As a percentage of turnover it is 3.4%. Not bad for a supermarket, ok for a car manufacturer but a service organisation?
Must be great to be a ticket clipper.