The group reported a consolidated net loss after tax of $1.6 million and a second-half profit after tax of $0.7 million, with its securities business – which comprises capital markets and wealth management – feeling the impact of volatile equity markets and cautious sentiment.
“…the securities business’ performance remained at unsatisfactory levels and steps are being taken to accelerate the return to profitability of this business,” acting chief executive Sandy Grant said.
“We are currently working to further simplify the business, to reduce costs and broaden the engagement of key staff in leadership activity.
“The group weathered a number of challenges in the 2013 financial year and, in this context, the lower loss for the full year and recording a profit after tax for the second half of 2013 represent a positive trend.”
Both results were at the upper range of guidance released by Wilson HTM in June.
The group’s funds under management (FUM) was up eight per cent on the prior comparative period, totalling $12.2 billion.
Wilson HTM’s wealth management branch, excluding Next Financial, delivered a loss before tax of $4.1 million compared with a $0.6 million loss before tax in the previous financial year.
The wealth management branch’s advisory revenue, which is generated by portfolios and performance fees, was down 10 per cent, with FUM on average down 12 per cent compared with the prior period.
However, the wealth management result was partly offset by the strong contribution from the Wilson HTM Priority Funds, which out-performed their benchmark by 13.3 per cent and 11.1 per cent respectively over the past year.
Wilson HTM’s business investment segment, which includes Principal Investments and Pinnacle, also contributed a profit before tax of $4.8 million.
“The group’s strong performance in funds management, notably from Pinnacle and its boutique fund managers, is extremely pleasing,” Mr Grant said.
Pinnacle’s FUM was up nine per cent on the prior comparative period.
The group also made note of the one-off costs related to an investigation into allegations against former managing director Andrew Coppin.
Going forward, Wilson HTM said it is looking to improve revenue by simplifying the business structure, continuing its cost reduction program and increased management discipline.
