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Sequoia reports 51% revenue jump

The firm recorded revenue growth across all of its divisions during the first half.

Sequoia Financial Group has reported a 51 per cent jump in revenue to $79.1 million and a 57 per cent increase in net profit after tax to $2.6 million during the first half of the financial year.

In a statement to the ASX on Thursday (17 February), Sequoia said that its EBITDA had risen 38 per cent during the half while the firm declared an interim dividend of 0.5¢ per share, up 25 per cent.

Commenting on the results, Sequoia MD and chief executive Garry Crole said he was delighted with the firm’s financial and operating performance over the period.

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“Although the sector faces many challenges, these are exciting times, especially for Sequoia’s largest division, Wealth that continues to grow as the major banks exit financial advice and advisers seek a licensee that can pro-actively assist them to maximise business opportunities and effectively navigate regulatory and compliance demands,” he said.

Revenue for the firm’s wealth division increased 17.6 per cent to $32.6 million during the half while growth was strongest in the firm’s professional services division that recorded a 113.3 per cent increase to $4.7 million.

Mr Crole noted that the firm typically records better profits in the second half and flagged his expectations that this would hold true this financial year as well.

“There are approximately 16,000 authorised representatives providing advice under around 2,000 AFSLs in Australia. In addition, there are approximately 10,000 individual accounting practices and there’s no reason why every one of these cannot access a service from one of the Sequoia entities,” he said.

“These two groups of ‘end client gatekeepers’ need an organisation like Sequoia that is separated from product and uses scale to provide a service, or multiple services to drive down the end cost of providing advice to their clients.”

He noted that Australians needed to have access to the services of qualified professionals as intergenerational wealth passes down through families and as retirees capitalise when downsizing the wealth created as a result of the super guarantee and rising house prices.

“Finally, there is the emergence of discount brokers, cryptocurrencies, and range of direct to consumer investments that is creating excessive risk to those attempting to manage their own affairs without the expertise and knowledge of financial markets, products, and strategies that only a professional financial advice practitioner can provide,” added Mr Crole.

Sequoia reports 51% revenue jump
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Jon Bragg

Jon Bragg

Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.

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