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Tenet lifts earnings and restructures loss making subsidiary

Tatton Asset Management

Tenet Group, the Leeds-based adviser support group, posted a 44% increase in earnings to £2.2m for the 12 months to 30 September 2017. Headline turnover increased by 10% to £168.6m.

TenetLime, the group’s mortgage and protection network, increased turnover by 25% to £50m; TenetConnect, the group’s investment network, reported another strong year, with turnover of £114m, an increase of 3% from 2016; and, TenetSelect, the group’s directly authorised proposition, increased its profit by £0.2m.

The Group also incurred exceptional costs of £1,475,116 during the year, after taking the decision to restructure a loss making subsidiary, The Employee Benefits Corporation Limited.

A statement from Tenet said: “Like others, the group invested in the auto enrolment market based on the expected opportunities. With the introduction of NEST however, those prospects diminished and the decision was taken to restructure the operation whilst continuing to serve existing clients. The group also incurred the costs of a strategic review by its major shareholders and this resulted in their decision to continue with their interest in the group, which gives Tenet a solid platform from which to improve performance and implement its five year strategy.”

The group’s balance sheet showed £24.2m of cash, no external debt and £29.9m of net assets.

Tenet Group chief executive Martin Greenwood said: “We are proud to be one of the few groups who continue to make a success of the independent network model, whilst also being able to transition firms to directly authorised status if appropriate. It was very disappointing that the group incurred exceptional costs during the year, after taking the difficult decision to restructure a loss making subsidiary, but our underlying profitability remains solid.  We aim to concentrate on our core propositions going forwards and have a great platform from which to improve performance, whilst maintaining our financial strength and continuing to enjoy the support of our major shareholders.”