Fiducian to continue growing advice arm by acquisition
ASX-listed financial services provider Fiducian Group has indicated that it will grow its advice business via practice acquisitions and building franchisee relationships.
In reporting its half-year results for the six months ending 31 December 2015, the financial services provider said there has been a "heightened effort" to build a distribution base with "quality financial planners".
"The board is supportive of growth by acquisition in the current environment and we are progressing further opportunities for acquisition of financial planning practices," a statement from Fiducian said.
"Opportunities to add new franchisees are continually being progressed. Further, acquisitions of around $190 million of funds under advice have brought new planners to the group."
"These additions have not contributed to the results of the current half year fully but are expected to do so in the second half," the statement said.
Fiducian founder and managing director, Indy Singh, said the business will be looking to grow other areas of the business as well.
"Accounting/business services and IT are the other two business activities with substantial potential yet to be fully exploited," he said.
Fiducian reported it had posted a 15 per cent increase in net underlying profit after tax for the six-month period, while also posting a 16 per cent increase in funds under management, administration and advice and administration.
The group's chief financial officer, Rahul Guha, added that the rate of funds-flow to Fiducian's platforms has also been "strong" in the past six months.
"[Funds under management, administration and advice] has grown 49 per cent in the past three years and stood at $4.4 billion in December 2015," he said.
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