IOOF's financial planning arm, Consultum Financial Advisers, is looking to grow after a difficult half year.
The adviser group which, according to IOOF chief executive Tony Robinson, recently saw adviser numbers dip under 100, has continued to be a loss-making entity within IOOF in the half year to December 31.
"It's a growing business that has been through a little difficulty . on a fully allocated basis the business is running at a loss, on an incremental basis it does break even, but is a key part of our funds flow," he said.
Consultum's relative contribution to the company's result was minus 4 per cent, with its unit cost to income ratio at 132 per cent.
Funds under advice did increase to $2.3 billion in the half from $1.9 billion in the second half of 2007.
Adviser numbers currently total around 110 and the group was looking to expand to over 120 by the end of the financial year, Robinson said.
According to Cameron Stockbroker executive chairman Steven Pritchard, many financial planning firms appeared to struggle as part of a fund manager.
"You need to ask yourself why they are in this business when so many independent planning groups seem to do so well," Pritchard said.
IOOF reported a $5.73 million net profit from ordinary activities after tax attributable to member for the half year ended December 31, down 59.3 per cent fall on the previous corresponding period.
According to Robinson, the difference between the net profit from ordinary activities after tax and the company's underlying net profit after tax result of $15.7 million took into consideration accounting for the impact of the acquisition of Perennial Investment Partners and a net liability revaluation due to accounting standards.
"The result was pretty much in line with market expectations," Pritchard said.
