DKN recovers in first half
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DKN Financial Group has reported an underlying net profit after tax of $3.87 million for the six months to December 31, 2009 — a 25 per cent increase on the previous corresponding period.
The company also recorded an increase in funds under advice of more than 16 per cent to $7.75 billion for the first half, as well as platform net inflows of $306 million. But results in its product solutions segment were down from $685,000 to $417,000 over the related periods. DKN reported impaired assets of more than $17 million in the previous corresponding period, but said none were identified in the first half of this financial year.
DKN subsidiary Lonsdale Financial Group reported a $54,000 profit for the six months to December 31, 2009, compared with a $569,000 loss in the previous corresponding period. Over the six months to December 31 Lonsdale attracted six new associates (representing 24 authorised representatives) to its network of 108 practices.
DKN also holds minority equity positions in wealth management practices, one of which the group said is struggling to recover from the last 12 months and is under review.
The group provides support to wealth management practices, including access to products and back office support.
DKN pointed to the scalability of its business model as a key element that would drive profit growth. DKN chief executive Phil Butterworth said the group continues to review strategic transactions to increase the scale and diversity of its offering.
DKN is positioning itself as a long-term player in an industry undergoing potentially significant structural change.
“DKN advocates fee-for-services and continued commercial reviews to ensure current structures provide adequate investor protection,” Butterworth said.
“DKN is monitoring and involved in industry developments to ensure it continues to be well positioned to implement any changes which flow from the various inquiries and reviews into the financial services industry,” Butterworth added.
The group also pointed to a new succession-planning module it intends to launch in the first half of 2010.
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