Fiducian profits soar to $1.9m

Non-aligned wealth management group, Fiducian Portfolio Services, has reported a 915 per cent increase in consolidated profit after tax to $1.877 million for the 2005 financial year compared with $0.185 million profit in 2004 and trading losses in 2003.

The company also reported strong growth in funds under administration to June 30 2005, with Fiducian Investment Service reaching $230.7 million, up 41 per cent on the previous year, and Fiducian Superannuation Service ending with $566.7 million, up 24 per cent.

The improvement in results follows a shake-up of the group’s distribution team in March when former Commonwealth Bank executive Michael Nicholson took on the role of head of financial planning and distribution, Sharon Knightly was made national franchise manager and ex-Macquarie Bank and AM Corporation marketing staff member, Christine Howard became marketing and communications manager.

Managing director, Indy Singh attributed the year’s strong results to the group’s business model which he said “captures the value chain of financial planning, portfolio administration, funds management and support systems”.

Singh expected profit growth to continue with management focused on controlling expenditure, expanding the distribution network and lifting funds under administration.

“The management team is working hard and is quite determined to achieve profit growth and business expansion in Australia and where possible, overseas,” he said.

Singh said the Fiducian Funds had also performed well over the 2004-05 financial year, particularly the Fiducian International Shares Fund, which was ranked the best performing ‘core’ international shares fund for the three year period ending June 30, 2005 by a Mercer Investment Consulting survey.

The company also reported earnings before interest, tax, amortisation and depreciation were $3.65 million, up from $1.29 million last year.