Diverger Limited adviser numbers are down 18% from Financial Adviser Standards and Ethics Authority (FASEA) driven departures of limited authorised representatives while average licensee net revenue per adviser is up 64%.
Announcing its half-year results to the Australian Securities Exchange (ASX), Diverger posted statutory earnings before interests, taxes and amortisation (EBITA) of $3.21 million in in the half year ended 31 December 2021, up 5%.
Looking forward, it said the board and management’s view was that the financial advice and accounting industries represented an attractive investment opportunity in the next five years.
By 2025, it wanted to triple net revenue, grow its client base in its high margin accounting solutions business by 40% and grow its EBITA margin in wealth solutions to 40%.
“Achieving the 2025 goal depends on both increased organic and inorganic results. The company continues to explore M&A options to accelerate growth, however none have met board criteria for investment to date,” Diverger said.
The firm said organic momentum was continuing to build with revenue from continuing operations jumping 54% to $59.97 million from $38.96 million in 1H21 and net revenue sliding up 11% to $14.78 million.
Looking at the wealth segment of the business, net revenue increased 30% to $7.52 million from %5.80 million in 1H21. There was also a 37% growth in the funds under management for its managed portfolio services CARE, which the firm said was in line with a multi-year trend of high growth.
The advice and accounting services firm said it was improving business margins and sustained growth through its EBITA result, representing a 3-year compound annual growth rate of 21%.
The margins of its wealth arm had grown 25% which Diverger was forecasting to continue to grow.
It said its accounting solutions were sustaining pleasing margins of around 39% despite net revenue down 3% to 7.26 million.
Diverger set an interim dividend of 1.5 cents fer share, fully franked, with record date 19 April, 2022 and payable 26 April, 2022.
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