Tenet has reported a 40 per cent increase in profit despite taking a hit on a failed employee benefits venture.
The network, which operates an investment network, a mortgage and protection network and a directly authorised support service, reported a 10 per cent increase in turnover to £168.6m.
However, margins remain thin, with profits coming in at just over £2m, partly due to “exceptional costs” after scaling back a loss-making subsidiary, The Employee Benefits Corporation Limited.
Tenet writes: “Like others, the group invested in the auto enrolment market based on the expected opportunities. With the introduction of Nest however, those prospects diminished and the decision was taken to restructure the operation whilst continuing to serve existing clients.”
The firm has said it remains proud to be “one of the few groups who continue to make a success of the independent network model”, and that it still has £24.2m in cash reserves and no external debt.
Chief executive Martin Greenwood says: “It was very disappointing that the group incurred exceptional costs during the year, after taking the difficult decision to restructure a loss-making subsidiary, but our underlying profitability remains solid.”
The firm was in takeover discussions with Old Mutual-owned network Intrinsic in 2016, but talks collapsed.