Publicly-listed financial services group, Fiducian Portfolio Services has reported a strong full-year result, with net consolidated profit after tax increasing by 17.4 per cent to $3.98 million on the back of solid performances by all divisions.
Commenting on the result, Fiducian managing director, Indy Singh said that a key feature of the company was that it currently remained debt free and was in a positive working capital and cash flow position.
He noted that during the year, Fiducian had added a small accounting practice and an additional small financial planning client base to the business, with both being serviced by the existing staff.
As well, Singh said that in April Fiducian had acquired a financial planning practice with $66 million in funds under advice.
He said the business expected to make further acquisitions in the coming year.
Where financial planning was concerned, Singh said that the Future of Financial Advice (FOFA) regulatory changes appeared to have been accepted within the industry and that, in any case, Fiducian's financial planning practices had been compliant well in advance of the changes.
On the question of future financial planning acquisitions, Singh said that over the years there had been large scale groups merging to become bank or institutionally aligned and a number of smaller groups becoming insolvent or wound up due to claims or compliance issues,.
He said that in addition, the propensity for credit seemed to have contracted and lending covenants being imposed upon smaller dealerships appeared to be much tighter — something that would provide opportunities for Fiducian.
He said that opportunities also existed for the company with respect to accountant licensing.
