Further acquisitions remain a possibility for WT Financial as it finalises the integration of Synchron, Sentry and Wealth Today.
The firm released its full-year results this week and announced a net profit before tax of $2 million and EBITDA of $3.9 million which the firm said was a good result compared to a loss of almost $1 million in the previous year. The firm had also encountered $2.8 million in restructuring costs last year related to the acquisitions.
Speaking to Money Management, chief executive, Keith Cullen said: “It is still a work in progress to get the three firms integrated but we are proud of the progress so far at an executive and a team level and are bringing all the resources together.
“We want to deliver a best of breed offering and we need the right scale to deliver that. If we can do that then the financial outcomes will look after themselves.”
As to how the three different firms were being integrated together with WT Financial, he said the firm had reduced duplication at the back end with a single approved product list and single risk management framework to ensure consistency.
He said he was pleased with the proposals put forward by the Quality of Advice Review especially the removal of duplication and the notion of good advice.
“A lot of people have decided [advice] is too hard and I don’t understand that because advice has always been heavily regulated. Maybe it had become too much but the Government has recognised that now and is taking steps to improve it and reduce duplication.”
However, he cautioned against creating inequity in the types of advice accessible to consumers particularly if those who received advice from their superannuation fund wanted to get a second opinion from an adviser who wasn’t a product provider.
Looking ahead, Cullen said WT Financial was not ruling out further acquisitions as he felt it was becoming more and more challenging for smaller licensees to run their business.
“I expect we will see more consolidation, I am not ruling out further acquisitions or further corporate activity but it is not top of mind for us.
“In the wake of the Royal Commission, consumers like the smaller advisers as they want that intimate connection with a trusted provider. But to do that without the support structure able to navigate the things they only do occasionally is increasingly difficult for smaller dealer groups and it is really critical they have that infrastructure behind them.”
