• Revenue $63.4m, up 4.6% on 1H FY25
• Operating profit $4.8m, up 75.9%
• Interim dividend 1.0 cent per share, fully franked

Sequoia Financial Group Limited (ASX: SEQ) released its results for the first half of FY26, reporting a significant improvement in underlying performance. Revenue increased to $63.4m, up 4.6% on the previous corresponding period, reflecting stable demand and growth across both operating divisions. Operating profit (normalised EBITDA) was $4.8m, up 75.9% (1H FY25: $2.7m). The Group recognised two significant non-operating expense items during the period: a $0.9m settlement relating to a Libertas Financial Planning matter and a $2.1m loss on disposal of two insurance broking subsidiaries. After these items, Sequoia reported a net loss of $0.25m for the half. The company maintained a strong balance sheet, closing the half with cash of $2.5m and ASX-listed investments totalling $17.6m. Despite the improved earnings at an operating profit level, the Board has declared a reduced fully franked interim dividend of 1 cent per share (1H FY25: 2 cents per share). The Licensee & Adviser Services division reported revenue of $56.5m, up 4.4%, while the Legal & Administration Services division reported revenue of $5.0m, up 8.7%. The company's investments in associates Euree Asset Management and Morrisons Securities, as well as its major holding in Centrepoint Alliance, have performed well, with gains on the investment portfolio totaling $1.9m in the half. Sequoia noted that ASIC has commenced civil penalty proceedings against InterPrac in relation to historical conduct involving former authorised representatives and their recommendations for clients to invest in the Shield Master Fund and First Guardian Master Fund. The company is defending the allegations and has strengthened its governance, including establishing a new AFSL Governance Committee. Looking ahead, Sequoia remains focused on improving earnings quality to support sustainable shareholder returns, progressing its Asia-Pacific strategy, and maintaining positive momentum in its salaried advice businesses and Legal & Administration Services division.

Sequoia's diversified structure, improving earnings outside of InterPrac, and strengthened governance framework position the Group to navigate the current challenging advice market environment constructively. The company's comprehensive review of InterPrac is expected to be completed by June 2026. Sequoia remains focused on improving earnings quality to support sustainable shareholder returns, progressing its Asia-Pacific strategy, and maintaining positive momentum in its salaried advice businesses and Legal & Administration Services division.