WT Financial Group’s Revenue Climbs 33.5% to $106.3M in H1 FY25
WT Financial Group has reported a robust half-year performance with underlying revenue up 33.5% and net profit before tax rising 35.8%, driven by operational efficiencies and growing demand for financial advice services.
- Underlying revenue increased 33.5% to $106.3 million
- Underlying net profit before tax rose 35.8% to $2.45 million
- Gross profit grew 26.7% despite rising direct costs
- Interim fully franked dividend of 0.20 cents per share declared
- Strong demand for M&A advisory and technology adoption supports growth outlook
Robust Half-Year Growth
WT Financial Group Limited (ASX: WTL) has delivered a strong set of indicative results for the half-year ending 31 December 2024, reporting a 33.5% increase in underlying revenue to $106.3 million and a 35.8% rise in underlying net profit before tax (NPBT) to $2.45 million. These figures reflect the company’s disciplined growth strategy and operational efficiencies achieved through the integration of its advisory networks.
Despite a significant increase in direct costs of sales, rising from $71.57 million to $96.13 million, WT Financial Group managed to grow its gross profit by 26.7% to $10.17 million. Earnings before interest and tax (EBIT) also improved by 19.6% to $2.79 million, supported by controlled operating expenses and a reduction in depreciation and amortisation charges.
Dividend and Capital Management
The company announced an expected fully franked interim dividend of 0.20 cents per share, bringing total dividends declared over the past 12 months to 0.70 cents. This dividend policy underscores WT Financial Group’s commitment to balancing reinvestment in growth initiatives with delivering attractive returns to shareholders. The company’s cash position strengthened to $7.06 million as of 31 December 2024, despite payments related to prior acquisitions and dividends.
Market Dynamics and Strategic Positioning
CEO Keith Cullen highlighted the positive outlook for the financial advice sector, noting that demand for quality financial and personal risk insurance advice continues to grow. The company benefits from high barriers to entry that constrain adviser numbers, while technology adoption is enabling practices to scale and serve clients more efficiently.
WT Financial Group is also capitalising on increased demand for merger and acquisition (M&A) advisory services among financial advice practices seeking to achieve scale and operational efficiencies. With its corporate expertise and track record in business integrations, the company is well positioned to support these initiatives, which could further enhance margins and asset values.
Looking Ahead
The company expects to lodge its audit-reviewed interim report and Appendix 4D by 28 February 2025, with no anticipated material variances from the indicative results. An investor webinar scheduled for 6 February will provide further insights into the half-year performance and strategic outlook.
WT Financial Group’s growth trajectory and strategic focus on technology-enabled advisory services and M&A support signal a promising path forward in a competitive and evolving financial services landscape.
Bottom Line?
WT Financial Group’s strong half-year results and strategic M&A focus set the stage for sustained growth amid evolving market demands.
Questions in the middle?
- How will WT Financial Group’s tax position and carried-forward losses impact future profitability?
- What specific technology advancements is the company implementing to enhance adviser efficiency?
- How might increased M&A activity among advisory practices influence WT Financial Group’s market share and margins?
