WT Financial flags positive full year result

Publicly-listed WT Financial Group has flagged what it is describing as a “strong” indicative full-year result entailing a 17.2% increase in gross profit to $21.1 million.

The company has told the Australian Securities Exchange (ASX) it expected earnings before interest, tax, depreciation and amortisation (EBITDA) for the underlying business to be up 13.4% to $6.8 million with underlying net profit before tax is expected to be up 20.8% to $5.4 million.

It said revenue and other income for the year rose 17% to $216.1 million driven by organic growth across its national adviser network and continued momentum in both its business-to-business and business-to-consumer channel.

Direct cost of sales increased to $195 million.

The company’s solid indicative result follows on from its 31 March announcement that it had entered into a 50/50 joint venture with Merchant Wealth Partners to invest in Australian financial advice practices via a new entity.

It also follows on from the company’s half-year results where it reported a 43.3% increase in underlying net profit before tax to $2.59 million but a 3.8% decline in net profit after tax to $2.108 million.

Releasing the indicative full-year numbers, the company said operating cash flow for the year was solid at $5.8 million and said it continued to maintain one of Australia’s largest financial adviser networks through its Wealth Today, Sentry Advice, Synchron Advice and Millennium 3 licensee groups.