BFG 44% half-year profit decline amid transformation

Bell Financial Group (BFG) has reported a 44% decrease in half-year net profit after tax amid what it described as “challenging market conditions”.

The company said its revenue was down 12.5% to $121.5 million but also noted htat revenue remained strong in its Technology & Platforms and Products & Services divisions with combined revenues up 12% to $46.3 million against a 23.5% decline in broking division revenue to $69.4 million.

The directors declared an interim dividend of three cents per share, fully franked.

Commenting on the result, Bell Financial Group co-chief executive, Dean Davenport noted that growth in the firm’s recurring revenue divisions remained strong and was set to continue “as we transform into a more diversified wealth management business with multiple, scalable revenue streams”.

The firm’s commentary said an increase in operating costs during the period reflected investment in future growth, including investment in the new Bell Potter wealth platform, developing other new products and services that would be launched in the near term and BFG’s inaugural graduate program.