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Tenet's earnings increase by 44%

Tenet's earnings increase by 44%

Tenet posted a 44 per cent increase in earnings to £2.2m for the 12 months to 30 September 2017.

Turnover increased by 10 per cent to £168.6m while Tenet incurred exceptional costs of £1.4m after restructuring a loss making subsidiary, The Employee Benefits Corporation Limited.

TenetLime, the mortgage and protection network, increased turnover by 25 per cent to £50m and TenetConnect, the investment network, had a turnover of £114m, an increase of 3 per cent.

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Meanwhile, TenetSelect, the directly authorised proposition, increased its profit by £0.2m.

Martin Greenwood, chief executive of Tenet Group, 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."

The Employee Benefits Corporation was created when Tenet invested in the auto-enrolment market because of "expected opportunities" but the introduction of the government-backed National Employment Savings Trust (Nest) meant these opportunities failed to deliver what was expected.

As a result the company was restructured but will continue to serve existing clients.

Tenet 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 company.

Tenet is owned by Standard Life, Aegon and Aviva, with the last of these the single biggest shareholder.