Wilson HTM on track after wealth management takes a hit
Wilson HTM Group has reported a net loss after tax of $2.3 million for the six months to 31 December 2012.
In a statement to the ASX, the company was quick to point out that the result was an improvement on the first and second halves of the 2012 financial year, during which Wilson HTM lost $3.3 million and $4.3 million, respectively.
Wilson HTM managing director Andrew Coppin said the company expected the positive trend to continue during the six months to June 2013, with the group anticipating a return to profitability in the 2014 financial year.
The wealth management segment bore the brunt of the loss, recording a $4 million loss before tax - as opposed to a profit of $935,000 during the previous corresponding period.
Coppin said the poor wealth management result was largely down to the "poaching" of several high-value advisers by rival stockbroking firm Ord Minnett in the second half of last year.
In September Wilson HTM successfully sued Ord Minnett in the NSW Supreme Court for $174,000 in damages, with the court finding Ord Minnett had inappropriately induced five advisers to leave.
"Relatively speaking, [the wealth management division] was down more than other areas of the business because of the loss of revenue, the loss of funds under management and the allocation of costs," said Coppin.
But he added that the wealth management arm was picking up in the last few months of last year and "significantly outperforming" in January.
"We're seeing a lot more volume, and a lot more interest from investors. We've been winning quite a few big mandates. We've got 75 advisers and I've had three calls this week from people talking to me about mandates they're winning of over $5 million - and $10 million in one instance," he said.
"The high-new-wealth clients that we deal with are looking to take money out of cash and put more into risk," Coppin added.
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