• Streamlined operations and improved accountability, delivering $1.5m in annualized salary savings
• Invested in technology to improve efficiency across 2 key business divisions
• Divested non-core businesses, with Legal and Administration Services operating profit up 70%
• Reduced issued capital by 5% through on-market buyback, maintained 2 CPS FF dividend

Sequoia Financial Group Ltd reported its 1HFY25 results, with revenue of $60.6m and operating profit of $2.7m. The company streamlined existing operations and improved accountability structures, delivering annualized salary savings of ~$1.5m. It invested in technology to improve efficiency across the 2 key business divisions and divested non-core businesses, including General Insurance Broking, Informed Investor, Corporate Connect Research and Taking Control joint venture 50%. The Legal and Administration Services division saw operating profit increase by 70% through organic and acquisitive growth. Sequoia reduced its issued capital by 5% through an on-market buyback and maintained a 2 CPS fully franked dividend. The company recognized the potential for future growth from the large market of financial planners and accounting firms in Australia. Sequoia also appointed a new chairman and made positive changes to the executive team.

Sequoia expects continued revenue growth and stronger margins in its Legal and Administration Services division, with a stronger 2nd half contribution from the Licensee and Adviser Services division.

Sequoia is focused on executing key strategic initiatives, including divesting non-core businesses, streamlining operations, investing in technology, and using its strong balance sheet and franking credit balance to support growth and shareholder returns. The company sees industry tailwinds and drivers of growth in its market, including the growth in superannuation assets, rising demand for strategic financial advice, and the professionalization of the industry.