Sequoia expects 16% rise in wealth revenue in 2022
Sequoia, which has reported the revenue from its wealth division of $62 million in FY21, has said it expects further increase to $72 million in FY22 thanks to tailwinds created by advisers reconsidering their long-term licensing arrangements after the banks exit from wealth industry.
At the same time, Sequoia announced revenues from the wealth division accounted for 53% of the group revenue in FY21 and, in FY22, it would represent less than 50% of group revenues.
Following that, the company said it expected the industry overall adviser numbers to continue to fall until 2024 then begin to increase “with an internal goal to provide services in some capacity to 1,000 advisers by that time”.
The company said in its announcement made to the Australian Securities Exchange (ASX) addressing the 2021 Annual General Meeting (AGM) it was on track to realise its five-year business plan set out in 2019 to build ‘a much larger business’ with $400 million revenue by 2024/25 and confirmed its FY22 forecast EBIDTA was to increase by more than 15% on FY21 result.
In the chairman’s address, Sequoia confirmed that it would remain focused on investing for growth and expected future growth to come from “a mix of organic and acquisitional activities”.
“We are particularly looking to increase the number of services we provide advisers, accountants and aligned businesses who can serve a community where there appears to be an emerging shortage of advisers able to serve demand for such services,” the company said.
Recommended for you
It can be extremely hard to realise the gains from financial advice M&A, according to Peloton Partners’ Rob Jones, and more could be gained from firms looking inward at their own practice.
With platforms reporting their quarterly results, there is a clear divide in the adviser markets they are targeting, according to platform specialist Recep Peker, and which would be right for your clients.
The Federal Court has imposed a $10 million penalty on Macquarie Bank for failing to prevent and control unauthorised fee transactions by third parties including financial advisers.
A financial advice firm has seen a weekly decline of 10 advisers, with all moving to a new licensee, while Centrepoint Alliance continues its “growth story”.
