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Tenet returns to profit after advisers bank trail

Tenet has posted a profit of £300,183 for the year to the end of September 2013, a turnaround from the £4.5m loss the network made in 2012.

Tenet says the boost was partly due to an increase in turnover as advisers used Q1 last year to finalise business on a pre-RDR basis.

The group, which includes its insurance arm Paragon, has set aside £9.95m for liabilities, down 5 per cent from £10.5m in 2012. Of the £9.95m total liabilities, £5.1m relates to the Tenet network, though Tenet declined to comment on what these liabilities relate to. 

It paid out £4.5m last year for Arch cru and Keydata redress, and says most of these claims have now been settled.

Turnover has increased 22 per cent to £118m from £96m in 2012.

The company says net adviser numbers in the network rose by 5 per cent year-on-year. It recruited 160 advisers at the end of 2013 following the collapse of Honister Capital.

In March the company took on some of the assets of Merchant House Financial Services and agreed a payment of £389,924, which will be paid in stages to creditors of Merchant House.

Tenet chief executive Martin Greenwood says: “The strong balance sheet, together with good investment in people, practicrs and technology, gives Tenet a strong post-RDR market position into 2014.

“The profit has been generated despite increased administrative expense due to the cost of RDR training, improved research and compliance and investment.”

Tenet finance director Caroline Bradley says: “The 22 per cent increase in turnover was partly down to the fact we had a very busy three month at the start of the year as business was written pre-RDR on the old basis so adviser could continue to receive trail. And then we had a good tax year end and the investment market was quite buoyant. 

“We are very pleased with where turnover was and we think the year was good for advisers. The RDR has gone as smoothly as we could have hoped. Now we feel that we are in a strong position.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. My very great friend in Rome 17th January 2014 at 7:01 pm

    Would Tenet please explain the justification for screwing its members with a £500 “resignation charge”. How many members have resigned over the past 12m?

    Many Honister members are far from happy with where they now find themselves and plan to resign as soon as they’ve managed to put in place suitable alternative arrangements for the future.

    Also, it’s more than a little fishy that Tenet always renews its (decidedly expensive) PII with Paragon. If Paragon offers such great terms to networks, why aren’t all the others insured with them? Why didn’t Paragon cover the £5.1m that was paid out last year in relation to ArchCru and KeyData? Why won’t Tenet reveal what its liabilities relate to?

    Questions, questions but no answers.

  2. How is it that 17% of network member firms have produced better profits (LEBC) than the Tenet Group. Very poor return on a turnover of £118m, £300k net profit, it will only take a very small negative hic-up for the network to produce a large loss.
    As a person who deals with companies on a regular financial basis, I would be very worried of any company that has not produced a 5% return on turnover over a long period, such as Tenet.
    May be Mr Greenwood will have to look at the restrictive advice model of operation if it proves profitable, or are his hands tied by the Provider Shareholders.

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