DKN Financial Group’s full year profits have rebounded and its chief executive Phil Butterworth said that major reforms presented a significant growth opportunity for the company.
The firm posted statutory profit of $7.2 million for the 12 months to June 2010, compared with an $11.54 million loss in the prior corresponding period.
Underlying profit improved 23.4 per cent to $7.64 million in full year 2010.
“We are very pleased with our profit growth over the last year and that net flows to our platforms have remained positive throughout the downturn, despite the loss of confidence in investment markets by the investing public,” Butterworth said.
He said that DKN supports the need for reform, which provides significant opportunities for the industry to boost its professionalism and transparency around fees.
“Over the coming years the financial services industry will go through major reforms and we see this as a significant growth opportunity for the DKN Financial Group,” he said.
“There will be fewer dealer group offerings in the market place that are not aligned to the major institutions this will provide Lonsdale with the ability to recruit more quality practices.”
DKN also expects to see opportunities to buy equity stakes in businesses via its Equity Partners unit as a result of further consolidation among wealth management practices, he said.
DKN’s funds under advice rose 9 per cent to $7.43 billion in the 12 months, and it had positive platform net inflows of $525 million.
The group had net cash of $7.44 million as at 30 June.
