DKN increases profit with half the advisers

The release of close to 50 advisers from DKN Financial Group over the implementation of a new user-pays fee structure during 2004-05, has had little adverse impact on the business’ financial performance.

The listed planning business, which operates Deakin Financial Services as its main dealer group, has posted a full-year net profit for the financial year of $1.62 million.

Under the new international accounting standards, where no amortisation of goodwill is charged, DKN’s net profit after tax was $2.96 million.

The result compares with a net loss last financial year of $0.08 million.

DKN chief executive Phil Butterworth said the result was underpinned by the group achieving its funds under administration target for the year of $2 billion, a 16 per cent increase on the previous year.

“We are beginning to see the benefits of efforts put in by our associated advisers and staff to establish a strong presence as a service provider to the non-aligned market,” he said.

The group’s acquisition strategy was successfully launched during the year, Butterworth said, enabling DKN to “grow and diversify revenue through minority equity positions in financial planning practices”, a strategy the group would continue to pursue in the next year.

DKN lost about 50 advisers earlier this year over the implementation of a new fee structure.