Deakin reports loss on back of expansion drive

Deakin Financial Serviceshas reported an operating loss of $776,403 for the first half of this financial year, and predicts this will increase to a loss of $1.2 million for the full financial year.

However revenues have grown by 51 per cent compared with the comparative period in the previous year, and Deakin has maintained over $6 million in cash on hand.

Deakin chairman Rob Hunwick predicts the financial position for the second half of this financial year will be improved as Deakin’s adviser network continues to grow and as new products, services and strategic alliances launched recently impact positively on sales.

The loss was foreshadowed by Deakin late last year, and is attributed to higher expenses associated with Deakin’s development and expansion program, as well as steep increases in professional indemnity costs.

Last month Deakin launched its new wrap platform, Deakin Smartplan, developed with technology providerAvanteosandvan Eyk Research.

While a major investment for Deakin, Smartplan will enable Deakin to build funds under management, according to Hunwick.

“Our primary objective is to assist Deakin financial advisers to maximise their productivity and profitability by delivering the best possible integrated service, support and administration to them,” Hunwick says.

Deakin has also recently launched a new life insurance product in conjunction with a newcomer to the Australian market, Prefsure, and has launched a strategic alliance with Salary Packaging Services Australia.

Deakin appointed its 150th adviser in January, and plans to have 200 advisers on board by next the end of this calendar year.

After recording a massive loss of $11.5 million in 2001 financial year, Deakin bounced back to post a small profit of $31,078 for the last financial year.