Fiducian Group has seen net inflows from its adviser network of $281 million in its FY24 results, helping statutory net profit after tax (NPAT) to $15 million.
In its results for the 2023–24 financial year, the licensee said funds under administration were $3.5 billion, up from $3.2 billion a year ago. In the financial planning division, funds under advice rose from $4.6 billion to $4.8 billion.
Statutory NPAT was $15 million, up from $12.3 million a year ago, while underlying NPAT rose from $15.1 million to $17.7 million. Revenue was $80.8 million, up from $73.3 million.
It said the licensee has 80 aligned financial advisers across 48 offices nationally – divided between 38 salaried and 42 franchised – and has an inflow target of $6 million from each adviser.
Financial planning is an “enabler of steady flows” to both its funds and Auxilium platform.
Earlier this year, the firm announced it had added two new franchisees to its national network in Gurbinder Gill and Paul Blackadder. Gill has been a principal and adviser at Melbourne-based Gill Private Wealth for over seven years. Meanwhile, Blackadder has been the principal at NT-based Blackadder Financial Services for more than 27 years.
In its results, the firm said: “Unlike FY23, we had steadily rising markets and consistent positive net inflows from our financial adviser network helping to achieve a net revenue increase of 11 per cent compared to FY23.
“Practice managers are focusing on helping our financial advisers lift their revenue, attract more clients, and build their businesses. Our focus will remain on generating inflows through organic and inorganic growth, while further acquisitions of client bases continue to be negotiated.”
Commenting on the results, executive chairman Indy Singh said: “Our focus remains on the establishment of a business with a rock-solid foundation and growth strategies to enable upscaling on existing capacity and leveraging our controlled, relatively low fixed cost base. This strategy has benefited us in difficult and uncertain times with increasing revenues and growing profits.”
Shares in the business have risen 18 per cent since the start of 2024 and are up by 19 per cent over one year, and has been identified as one of the best performing advice licensees in terms of share price growth.
The company declared a fully franked full-year dividend of 39.3¢ per share.
Amazing that these guys can still operate such a blatant vertical integration model. Didn’t Hayne say that this was the root of all evil… ‘Almost 100% of Inflows from our aligned advisers are invested through Fiducian platform and in Fiducian multi-manager funds”….”As volumes increase Fiducian margins increase”… “Inflow targets of $6 million for each Salaried Advisers”. What could go possibly go wrong?
How is that after a Royal Commission advisers can still have FUM targets to put money into a product, Fiducian to openly say in their reporting that almost 100% of flows are going into their own products. ASIC asleep at the wheel again