Tenet posts £1.3m operating profit

Tenet Group’s overall sales increased by 9.2 per cent to £86.4m for the 12 months to the send of September 2011, compared with £79.1m for the same period in 2010.

According to the advisory business’ results, published today (20 January) the on-going investment into services and support structures produced an increased operating profit of £1.27m, compared with £0.1m in 2010.

After taking account of non-recurring costs associated with group reorganisation, the loss before tax improved to £0.3m compared with £1.2m in 2010.

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Martin Greenwood, interim chief executive for the group, said: “Tenet has made notable progress in a year of continued adverse economic conditions and the specific challenges brought about by the approaching implementation of the RDR.

“The group’s largest operating division, our investment network TenetConnect, has enjoyed an excellent level of organic growth that is continuing into the current financial year.

“Meanwhile TenetSelect, which provides services to directly authorised firms and TenetLime, our mortgage proposition for both AR/DA firms, have both benefited from further developments and are now in a position to capitalise on the opportunities in their respective markets.”

Lord Hodgson of Astley Abbotts, chairman of Tenet, said: “In addition to greatly improved operating performance, the group’s balance sheet remains strong, with £26.7m of cash reserves and no external debt.

“Tenet has continued to evolve its RDR proposition through the development of the Tenet Advantage technology system and the on-going training and development support provided to its members.

“Additionally, the majority of the group’s financial advisers who are required to obtain the QCF level 4 qualification have either already achieved such status or are making significant progress towards it.

“The group is currently concluding the search for a new CEO and during the interim period has benefited from the experienced guidance of Martin Greenwood as interim CEO.”