Cost reductions undertaken by Wilson HTM Investment Group in 2011 have left the listed group in a strong financial position, the company’s managing director said.
Andrew Coppin told InvestorDaily the firm’s one-off cost reductions last year, which included the retrenchment of 26 staff, have left Wilson HTM in a strong position for the year ahead.
“It’s going to be a big year for us,” he said.
“We’re still recruiting [staff], we’re still recruiting advisers, and we’re still recruiting financial planners.”
The firm is also looking to hire a number of institutional dealers at a time when other global investment banks are contracting, Coppin said.
“The action that we took last year to act decisively on cost has put us in a substantially stronger position now, and we’re very clear about where we are heading. We’re executing our strategies,” he said.
As well as recruitment plans, Wilson HTM intends to expand its wealth management business across a broader range of assets.
It will also launch a new platform to be unveiled to its wealth managers, Coppin said.
“We’re rolling out a new platform to all 85 of our wealth managers that will allow them to invest in multi-currency, multi-markets and multi-asset for their clients,” he said.
Last week, Wilson HTM reported a net loss after tax of $3.3 million for the half year ending 31 December 2011.
The result compares with the $2.7 million profit for the corresponding first half of the 2011 financial year, and reflects weak equity markets and low investor confidence.
The results also revealed Wilson HTM’s subsidiary, Next Financial, received a claim in relation to structured instalment products.
The claim, believed to be before the courts, was for $830,000.
Asked about the nature of the claim, Coppin said he was unable to make any comment due to legal reasons.
Wilson HTM’s half-year report said the company received notice of the claim in August last year.
“Next Financial Limited and the Group [Wilson HTM] are continuing to assess the claim and will defend as required,” the report said.
“On this basis, no provision for settlement of the claim has been made in the financial statements for the half year ended 31 December 2011.”
Wilson HTM’s funds under management (FUM) slipped 10 per cent in the six months to 31 December, a figure slightly lower than the overall market decline.
As at 31 December 2011, total FUM was $10.9 billion; Pinnacle FUM was $9.3 billion and Wilson HTM’s was $1.6 billion.
