Tenet sees profits slashed

9 February 2010 | By Chris Salih

Tenet Group has seen its pre-tax profits slashed to £1m in the 12 months to September 30, 2009.

The return is a fall on the £2.8m pre-tax profit in 2008, while revenues also fell from £92.5m to £76.4m.

The group says that its net assets rose from £33m to £34m, while cash reserves were bolstered by almost £5m from £23.7m to £28.4m.

Tenet says the results follow a continued move by the group to invest in its multi-distribution support strategy as well as a transformation and re-brand programme to bolster its support propositions ahead of the RDR. The group has also been offering loans and business development finance to members during the banking crisis.

Tenet Group chief executive Simon Hudson says: “2009 was a very challenging year as the group grappled with demanding economic conditions and the debate regarding significant regulatory change.

“The business is well capitalised and carries substantial cash balances to ensure short-term shocks are absorbed, while capital remains available to take advantage of any new opportunities in the future. It is with some confidence that we look forward to the opportunities and challenges of 2010.”

Readers' comments (2)

Julian Stevens | 9 Feb 2010 2:25 pm
Sounds like Tenet's managing its affairs in the way the banks should have done ~ plenty of capital reserves and a well thought out plan for the future. £1m profit isn't too bad in these difficult times and Tenet seems to be nowhere near any risk of financial difficulties, unlike a number of its competitors. As a member firm, that's reassuring to know.
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Gillian Cardy | 9 Feb 2010 7:42 pm
25% drop in revenues??
Is that healthy??
Some will say that's what (obviously - duh) happens when markets fall.
I say that's what happens when you link IFA and / or network revenues to market performance.
It would be interesting to know a forecast for revenues when "clients won't pay fees" and when 25% of the advisers quit on 31.12.2012.
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