Sequoia turns lights off on Libertas Financial Planning

In its financial statement last week, Sequoia Financial Group said it decided in May to transfer the operations and customers of Libertas Financial Planning to InterPrac Financial Planning and Sequoia Wealth Management, to achieve “operational and cost synergies”.

“Libertas Financial Planning is in the process of a liquidation and company deregistration, with the intention to cancel the AFS licence,” it said.

Sequoia acquired national licensee Libertas back in 2019, in a deal that saw Libertas continue to operate under its own brand.

At the time, Libertas had an Australia-wide network of 70 authorised representatives, mostly focused on the eastern seaboard, and was the eighth ASFL business to operate within the Sequoia Group.

“The acquisition provides Sequoia with further scale in the advice marketplace and based on the latest dealer group survey makes Sequoia the third largest non-bank owned financial adviser group in the country,” said chief executive of Sequoia Garry Crole at the time.

More acquisitions planned

Also this year, Sequoia completed the acquisition of Castle Corporate and Castle Legal.

The acquisition of the Castle businesses aligns with Sequoia Financial Group’s strategic vision of providing an “extensive range of services to accountants, financial advisers, AFSL holders, and lawyers”, the firm said in August.

“Our service offerings deliver solutions to those who appreciate the value and timeliness of products, services, and advice acquired through scale and technology platforms,” it added.

Sequoia also divested 80 per cent of Morrison Securities to digital wealth management platform New Quantum Holdings for $40.5 million.

This pool of liquid capital, it said, will allow it to fund acquisitions with cash rather than via the “dilutionary effect” of issuing new shares.

“We expect organic growth within all four operating divisions and the focus on acquisitions will be within our licensees services and professional services divisions,” it said.

Last week, Sequoia reported a 10.7 per cent decrease in revenue to $131.5 million and a 55.6 per cent fall in operating profit to $5.5 million as part of its FY23 results.

Mr Crole and chairman John Larsen acknowledged that the figures, which included discontinued operations, were a “disappointment” on the surface.

Looking ahead, Sequoia said it “anticipates” a return to earnings growth in all divisions over the coming year.