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Tenet returns to profit after advisers bank trail

Network says increase in turnover was partly driven by advisers writing business on a pre-RDR basis in Q1 last year.

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 although 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 after it recruited 160 advisers following the collapse of Honister Capital.

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 months at the start of the year as business was written pre-RDR on the old basis so advisers could continue to receive trail. We also had a good tax year end and the investment market was quite buoyant.”

Aurora Financial Planning chartered financial planner Aj Somal says: “Large networks tend to have a small profit margin because they may have high turnover but they also have massive overheads. They may have to get a bit leaner to survive.” 

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