WTL Financial Group, the ASX-listed parent company of national financial planning group Wealth Today, has reported a net profit after tax (NPAT) loss of $3.28 million for FY21.
In the announcement made to the Australian Securities Exchange (ASX), it said this was due to the accounting for one-off write-downs and provisions which valued $2.89 million, compared to an NPAT loss of $594,000 in FY20.
The group said it had taken steps to restructure its balance sheets as of June 30, 2021, to “ensure that it has a clear runway to deliver in FY22.”
WTL also reported a 6% growth in revenue and other income to $13.56 million, with B2B revenue going up 24% year-on-year to $10.45 million while recurring and repeat revenue represented 86% of that ($9.01 million).
At the same time, earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $36,000 as compared to $1.02 million in FY20, which was in line with previous guidance, the group said.
With the acquisition of Sentry Group now completed, WTL expected the FY22 a significant increase in revenue to $70 million while NPAT was expected to be north of $2 million.
“In large parts the past three and a half years of restructuring has meant short-term financial outcomes have had to take a back seat to more strategic long-range thinking to ensure we recapture long-term value from our IP and assets,” WTL managing director, Keith Cullen, said.
“Adopting this approach has however seen us emerge as a disrupter – rather than simply being ourselves disrupted by the incredible structural shifts in the financial advice sector as the profession modernises.”
In June, WTL announced the acquisition of its industry peer, Sentry Group, a move which would see the combined entity to have around 275 advisers and further plans to have more advisers than the average mid-tier sized financial group through organic growth and potential acquisitions.
“This is a highly complementary and transformational acquisition that brings great scale and efficiencies and delivers an expanded board and management team,” Cullen said.