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Tenet profits soar by 35% during 2015

Tenet profits soar by 35% during 2015

Profits at Tenet Group grew by 35 per cent in the 12 months to the end of September 2015, according to the company’s latest report and accounts.

Headline turnover increased by 9 per cent to £136m and earnings before interest, tax, depreciation and amortisation went up by 15 per cent to £1.5m.

The group’s net profit was £472,000 compared with £349,000 in the previous year.

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Martin Greenwood, Tenet Group chief executive, said: “We have been pleased to deliver on our financial plan in our latest results, especially in a year that has seen us upscale support for pension freedoms and invest in improved systems for our members.

“Our on-going financial stability ensures that we are well positioned to capitalise on any opportunities that may arise from the Financial Advice Market Review and enhance our market position.

“Above all, our results, market position and success are made possible by the dedication and commitment of the people who make up the Tenet Group and to them, we say a heartfelt ‘thank you’.”

Mr Greenwood said the Financial Advice Market Review, which sees HM Treasury and the FCA tasked with finding out what it will take to plug the advice gap, represents an opportunity for those on the coalface to influence the regulation that governs the profession.

He said: “It will hopefully highlight the barriers to the provision of financial advice under the existing regulatory regime and particularly the untouchable position enjoyed by Fos.”

Tenet’s non-investment network, TenetLime recorded a 48 per cent increase in turnover and 105 per cent increase in earnings.

Tenet’s investment network, TenetConnect, also increased the number of its registered individuals by 5 per cent.

Turnover within TenetSelect, the group’s directly authorised proposition, grew by 5 per cent.

Mr Greenwood said the company will continue to invest in the Tenet Advantage system, with a “significantly improved” system launched this month.

Tenet was among the networks to attract new advisers as a result of rival network Sesame stating last spring that it would no longer house investment advisers, blaming a Retail Distribution Review-inspired “natural migration” towards direct authorisation, which challenged the “basic premise of the network model”.

In July last year Aviva and Friends Life offered Sesame a combined £45m to cover adviser liabilities.

Aviva, which bought Sesame’s previous parent Friends Life last year, offered the network £25m to cover liabilities they might have struggled to meet from their own coffers, which have been hit by a series of regulatory fines in recent years.

The provider also promised a further £20m to fund the costs of past business reviews and restructuring the business.