The Tenet GroupMar 22 2019

Tenet earnings and profits rise despite 'challenging' market

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Tenet earnings and profits rise despite 'challenging' market
ByRachel Mortimer

Tenet saw an increase in both its earnings and profits in 2018 despite the year being overshadowed by a "challenging" market. 

In the group's annual report and accounts for the 12 months to September 2018, Tenet reported a 13 per cent increase in earnings to £2.5m, up from £2.2m in 2017, and a pre-tax profit of £1.6m, up from the £400,000 loss before tax the previous year. 

Martin Greenwood, chief executive of Tenet, said despite a year "defined" by regulatory change and Brexit uncertainty the group's statutory turnover was £167.8m, a slight drop on the previous year's £168.6m. 

TenetLime, the group's mortgage network, increased its turnover by 26 per cent to £63m but TenetConnect, the group's investment network, saw its turnover drop by £12.4m to £101.6m. 

Mr Greenwood attributed this drop to the move of a "major member" out of the network to directly authorised status - but it has not identified which company it was.

TenetConnect saw its earnings increase by £800,000 to £500,000, mainly driven by cost savings. 

Mr Greenwood, said: "We are very pleased to have increased our earnings by 13 per cent in a year overshadowed by a challenging market environment.

"Our improved underlying performance for 2018 is a direct result of the hard work and commitment of all our colleagues across the group and our nationwide network of highly qualified financial advisers."

Mr Greenwood said Tenet has maintained a "competitive" professional indemnity insurance offering in a "shrinking market".

He said: "Due to the increasing focus on the suitability of defined benefit transfer advice, notably with the issues surrounding the British Steel Pension Scheme, the pressure to maintain competitive PII in a shrinking market was particularly difficult. 

"However, through our captive insurance arrangement and testament to our advice standards and claims history, we have been able to secure PII at very competitive rates, allowing us to reduce the percentage of PII charge for investment business." 

Earlier this month the Financial Conduct Authority confirmed the compensation limit available under the Financial Ombudsman Service would rise from £150,000 to £350,000 on April 1, despite concerns this could increase PII premiums and push smaller companies out of the market.