WT Financial Group’s Goodwill Weighs on Tangible Assets Despite Strong Profit Gains

• Underlying NPAT up 20.8% to $2.55 million
• Gross revenue increased 12.6% to $119.6 million
• Interim fully franked dividend declared at 0.25 cents per share
• Strategic shift to B2B advice ecosystem driving adviser productivity and network growth
• Investco joint venture advancing scalable advice platform (Hubco) consolidation strategy

Strong Financial Performance

WT Financial Group Limited (ASX: WTL) has delivered a solid half-year performance for the six months ending 31 December 2025, with underlying net profit after tax (NPAT) rising 20.8% to $2.55 million compared to the prior corresponding period. Gross revenue climbed 12.6% to $119.6 million, reflecting sustained growth across its financial advice networks. Earnings before interest and tax (EBIT) also increased by 16.3%, underscoring improved operational efficiency.

The company declared a fully franked interim dividend of 0.25 cents per share, up from 0.20 cents in the prior period, signalling confidence in ongoing cash flow generation despite a modest decrease in net tangible assets due to goodwill from acquisitions.

Strategic Shift to B2B Advice Ecosystem

WTL’s results highlight the success of its strategic transformation from a predominantly direct-to-consumer (B2C) model to a scaled business-to-business (B2B) advice ecosystem. The Group’s network now supports over 520 financial advisers operating under multiple authorised representative brands, including Wealth Today, Sentry Advice, Synchron Advice, and Millennium3 Financial Services.

This B2B focus has driven increased adviser productivity and practice revenues, benefiting from operating leverage and disciplined cost management. The Group continues to invest in technology and platform capabilities, enhancing service delivery and compliance support for its adviser networks.

Investco and Hubco Growth Strategy

A key growth pillar is the WTL & MWP Investco joint venture, established to provide capital and support for scalable corporatised advice platforms known as “Hubcos.” The first Hubco, Titan Advice Group, has expanded through acquisitions including Rushby Financial and Fusion Partners, integrating financial advice with accounting services. A second Hubco, Select Advice Group (Aust) Pty Ltd, is progressing multiple acquisitions, with several other Hub opportunities in development.

This strategy positions WTL to capitalise on industry consolidation trends and the scarcity of financial advisers, creating potential for equity income and recurring revenue streams beyond traditional licensing fees.

Financial Position and Outlook

WTL’s balance sheet remains solid with net assets increasing to $32.7 million and positive operating cash flow up 37.9% to $2.68 million. The Group maintains drawn financing facilities of $6.68 million and an undrawn $5 million facility, supporting ongoing investments and acquisitions.

While net tangible assets remain negative at (0.3) cents per share due to goodwill, the Board is confident in the Group’s ability to sustain growth and profitability. The results were in line with prior guidance and audit reviewed, providing transparency and assurance to investors.

Looking ahead, WTL aims to continue organic growth by expanding its adviser network, enhancing its technology platform, and selectively pursuing corporate opportunities aligned with its strategic vision.

Bottom Line?

WT Financial Group’s disciplined execution and strategic pivot to scalable B2B platforms set the stage for sustained growth amid industry consolidation.

Questions in the middle?

• How will the Investco and Hubco strategy impact WTL’s earnings mix over the next few years?
• What are the risks associated with the Group’s negative net tangible asset position due to goodwill?
• How sustainable is the dividend policy given ongoing investments and acquisition activity?