Fiducian posts profit following year of consolidation
Listed financial planning and funds management group Fiducian has reported after-tax profit for the past financial year of $3.27 million, compared to $2.21 million for the prior financial year.
The group's financial planning division Fiducian Financial Services, which has 68 planners, posted a pre-tax loss of $3000, which was a turn-around from the 2011-12 financial year in which the same division reported a pre-tax loss of $87,000.
Fiducian Business Services, a subsidiary which supplies book-keeping, account preparation and self-managed superannuation fund administration services to accountants, moved in the other direction by posting a pre-tax loss of $87,000 compared with a $31,000 pre-tax profit in the 2011-12 financial year.
In a letter to shareholders, Fiducian chair Robert Bucknell and managing director Indy Singh said that revenue from ordinary business activities fell by nearly 4 per cent because of a restructure of Fiducian's investment platform, and a reclassification of income items which had been used in the past to meet expenses. However net operating expenses all decreased by 14.6 per cent while cash flow increased to $4.81 million, up from $1.55 million in the previous financial year.
Bucknell and Singh also said the past 12 months had seen significant change impact Fiducian due to the implementation of the Future of Financial Advice (FOFA) reforms, which saw restructuring of some of the group's superannuation funds.
At the same time Fiducian said the year was characterised by the consolidation of financial planning acquisitions, the development of accounting services, upgrading software systems and the transition to a new custodian for the group's platforms.
According to Bucknell and Singh, the group's funds under administration increased by 8 per cent to $0.93 billion, up from $0.87 billion in the previous financial year, but were impacted by withdrawals from independent planners. The two said these outflows should decrease.
They also stated the platform restructure would allow the offering of further investment products to market, and that the group was in discussion with a number of advisory groups.
Fiducian stated it would now pay a total dividend of 7 cents per share for the past financial year by late September.
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