Insignia exits Godfrey Pembroke, posts NPAT loss
![Man examines balance sheet](https://financialnewswire.com.au/wp-content/uploads/Shutterstock_758307391.jpg)
Insignia Financial has posted a loss in net profit after tax (NPAT) of $49.9 million, but has pointed to underlying NPAT being up 1.2% to $95.5 million in its first half with outgoing chief executive, Renato Mota describing it as a “solid result”.
At the same time, Insignia has confirmed that it is exiting Godfrey Pembroke and that it has executed a sale agreement with the adviser-led Practice Development Group to return ownership of Godfrey Pembroke to advisers.
It said that this was under an existing arrangement from when Insignia acquired Godfrey Pembroke.
Insignia loss was attributed to expenditure on strategic initiatives and remediation.
Commenting on the result, Mota reinforced the company’s acquisitions of ANZ Pension and Investments in 2020 and MLC in 2021 saying that as a result Insignia Financial was now one of Australia’s leading wealth managers.
“These acquisitions have played a key role in transforming the business and establishing a foundation for sustained growth,” he said. “We have a diversified business model with a unique combination of capabilities delivering scale and value.”
The half-year announcement revealed that the Insignia advice business improved underlying NPAT improved by $21.2 million resulting in a loss of just $700,000.
It said revenue increased by 3.8% to $107.6 million driven by higher ongoing client fees from repricing in Shadforth and Bridges, partly offset by the cessastion of third-party income.
It noted that adviser numbers declined during the period by 326 to 1,199 advisers.
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