Sequoia profits soar after advice group buying spree

In a statement released to the market on Thursday, Sequoia Financial Group reported a net profit after tax of $1.93 million for the 2020 year, a 293 per cent increase on the previous financial year.

The group’s earnings before interest, tax, depreciation and amortisation also surged by 341 per cent over the year to reach $4.8 million, compared with $1.1 million the previous year.

The majority of this was achieved in the second half of the year, as Sequoia completed a number of advice acquisitions, including the purchase of Yellow Brick Road’s wealth arm, as well as the advice business of stockbroking group Philip Capital and former Interprac practice Total Cover Australia.

Sequoia chief executive Garry Crole said the group was pleased with its progress over the course of the year, which had seen its wealth subsidiary Sequoia Wealth Group become the fourth largest privately owned advice licensee in Australia.

“In possibly the most difficult year for business in more than half a century, we were able to grow our business, return to paying a dividend and report some much improved divisional results,” Mr Crole said.

“We have further strengthened our balance sheet and are well positioned to deal with challenging market conditions, should they continue.”

The group said it aimed to become “Australia’s leading advice and financial licensee services group” in the longer term, and increase revenue in its wealth, professional services and equity markets businesses by 20 per cent in the current financial year.