WT Financial Group turns six years of growth into a broader advice platform

Operating leverage emerges from the advice network

WT Financial Group Limited (ASX:WTL) has posted its sixth consecutive year of growth, with profit measures again outpacing revenue. Total net revenue and other income rose 15.6% to $33.1 million, while EBITDA advanced 19.5% to $8.2 million and net profit before tax increased 19.1% to $6.6 million.

The stronger operating result came despite a more demanding tax line. Statutory net profit after tax rose 6.9% to $5.0 million, as income tax expense increased to $1.6 million from $857,000. Basic earnings per share reached 1.45 cents, up from 1.36 cents in FY2025.

WTL’s headline gross revenue was $245.0 million, up 12.7%, but $213.3 million was paid to advisers under contracted revenue-sharing arrangements. That left net operating revenue of $31.7 million, up 11.7%. The distinction matters: the group’s economics are increasingly tied to the profitability and productivity of the practices using its licensing, compliance, technology and support infrastructure, rather than to the gross flow of client fees alone.

B2B platform replaces direct advice operations

The core B2B segment generated $18.9 million of net profit before tax, compared with $15.5 million a year earlier. It supports more than 500 advisers across approximately 400 privately owned practices operating through Wealth Today, Sentry Advice, Synchron Advice and Millennium3.

WTL completed the sale of its Vesta Partners advice and accounting businesses to Titan Advice Group on 30 June, receiving a combination of cash and shares. The transaction produced a $1.05 million gain on disposal and removes direct B2C operations from the group from FY2027, while preserving exposure through equity ownership, licensing and services relationships. The company describes the move as the final step in its shift to a B2B operating platform with additional participation in enterprise value created through its Investco joint venture and Hubcos.

Cash improves, but provisions and investment risk rise

Cash and cash equivalents increased from $9.8 million to $16.8 million, helped by $10.3 million of operating cash flow, compared with $5.9 million in FY2025. Net current assets more than doubled to $11.0 million, while net assets rose 8.4% to $34.6 million.

That improved liquidity comes alongside a larger financing commitment. WTL had drawn $9.2 million of an $11.7 million secured facility at year end, including $2.49 million drawn ahead of certain Hubco investments that had not yet settled. The facility carries a 9.9% interest rate and matures in August 2028; the group said it remained compliant with its financial covenants.

The accounts also record $4.8 million in professional indemnity claims provisions, up from $105,000, following the transfer of legacy Millennium3 matters to WTL. The company says the vendor made a corresponding cash payment, but its annual report still identifies client claims, remediation and uninsured losses as risks that could affect the group. Separately, $2.5 million of unlisted Hubco-related investments is carried at fair value, making valuation and the performance of minority investments important variables in the next phase of the strategy.

Dividend returns meet a more ambitious growth model

The board has declared a fully franked final dividend of 0.75 cents per share, taking dividends declared for FY2026 to 1.0 cent per share. The distribution gives shareholders a more tangible return while WTL continues to deploy capital into advice businesses, technology and the Investco-Hubco model.

The central question for FY2027 is whether the group can convert its enlarged network and new investment structure into repeatable earnings without allowing debt, legacy claims or minority-investment valuations to dilute the operating leverage now visible in the B2B business.