WT Financial sees 130% profit increase for FY23

WT Financial Group announced that its indicative results for the year to 30 June 2023 showed a 57 per cent increase in revenue and other income over the prior period to $162.49 million, up from $103.63 million.

WT Financial also more than doubled both its net profit before tax (NPBT), which was up 115 per cent from $2.35 million in FY22 to $5.04 million in FY23, and net profit after tax (NPAT), up 130 per cent to $4.31 million from $1.87 million in the previous financial year.

Keith Cullen, chief executive of WT Financial, said: “Our strategic acquisitions – the methodical rationalisation of our network and operations – and restructuring of legacy processes and paradigms – to place advice, and our advisers and their clients, at the centre of our relationship with the practices we support, are delivering results.”

The group said that with cost of sales sitting at $145.40 million for FY23, up from $92.56 million last financial year, it has an expected gross profit of $17.08 million – up 54 per cent from $11.07 million in FY22.

“At a time when others have turned their backs on wealth advice and personal risk insurance advice, we have recognised the incredible importance of the profession in supporting Australian families,” said Mr Cullen.

“We will continue to drive paradigm shifts in the licensee-adviser relationship to improve outcomes for practitioners, their clients, and our shareholders.”

WT Financial said it also expected its earnings before interest and tax (EBIT) to be up 99 per cent to $5.59 million after its total operating expenses increased just 49 per cent to $10.62 million and depreciation and amortisation totalled $862,000.

During the period, the company said it cash-settled $735,000 of upside performance payments associated with its July 2021 acquisition of Sentry Group and $1.71 million of prior period acquired liabilities associated with its March 2022 acquisition of Synchron.

It also settled upside payments of $735,000 associated with its Sentry acquisition and $651,000 associated with its Synchron acquisition, via the issuance of 9.47 million and 8.68 million new shares, respectively.

WT Financial’s cash balance on 30 June 2023 was $5.3 million, up from $3.38 million at the end of FY22.

“Our results are not only reflective of our performance, but of the positive outlook for advice practices and licensees in Australia,” said Mr Cullen.

“Demand for quality financial and personal risk insurance advice continues to grow as millions more Australians plan for and reach retirement – at a time when adviser supply has been reduced and barriers-to-entry set high – and net superannuation assets are growing at an incredible $2 billion each week.

“The outlook for our profession has never been stronger for those who embrace the modernisation of the profession, and we believe that outlook has been boosted thanks to the positive manner with which the government is approaching important reforms aimed at opening up accessibility of advice to more Australians.”

The company added that it expects to lodge its financial statements and Appendix 4E on or before 31 August 2023 and its audited financial statements and annual report by mid-September 2023.