Deakin reports loss on back of expansion drive
Deakin Financial Serviceshas reported an operating loss of $776,403 for the first half of this financial year, and predicts this will increase to a loss of $1.2 million for the full financial year.
However revenues have grown by 51 per cent compared with the comparative period in the previous year, and Deakin has maintained over $6 million in cash on hand.
Deakin chairman Rob Hunwick predicts the financial position for the second half of this financial year will be improved as Deakin’s adviser network continues to grow and as new products, services and strategic alliances launched recently impact positively on sales.
The loss was foreshadowed by Deakin late last year, and is attributed to higher expenses associated with Deakin’s development and expansion program, as well as steep increases in professional indemnity costs.
Last month Deakin launched its new wrap platform, Deakin Smartplan, developed with technology providerAvanteosandvan Eyk Research.
While a major investment for Deakin, Smartplan will enable Deakin to build funds under management, according to Hunwick.
“Our primary objective is to assist Deakin financial advisers to maximise their productivity and profitability by delivering the best possible integrated service, support and administration to them,” Hunwick says.
Deakin has also recently launched a new life insurance product in conjunction with a newcomer to the Australian market, Prefsure, and has launched a strategic alliance with Salary Packaging Services Australia.
Deakin appointed its 150th adviser in January, and plans to have 200 advisers on board by next the end of this calendar year.
After recording a massive loss of $11.5 million in 2001 financial year, Deakin bounced back to post a small profit of $31,078 for the last financial year.
Recommended for you
In this week’s special edition of Relative Return Insider, we bring you outgoing Financial Services Minister Stephen Jones’ keynote from Momentum Media’s Election 2025 event, followed by a Q&A focused on the Delivering Better Financial Outcomes reforms.
In this week’s episode of Relative Return Unplugged, Dr Vladimir Tyazhelnikov from the University of Sydney’s School of Economics joins the show to break down the shifting sands of global trade dynamics and attempt to understand the way US President Donald Trump is employing tariffs.
In this week’s special episode of Relative Return Unplugged, we present shadow treasurer Angus Taylor’s address at Momentum Media’s Election 2025 event, followed by a Q&A covering the Coalition’s plans for the financial services sector.
In this week’s episode of Relative Return Unplugged, AMP chief economist Shane Oliver joins the show to unravel the web of tariffs that US President Donald Trump launched on trading partners and take a look at the way global economies are likely to be impacted.
