Half Yearly Report and Accounts

• Group revenue up 4.6% to $63.4m
• Operating profit (normalised EBITDA) up 75.9% to $4.8m
• Statutory net loss of $0.25m due to non-recurring items
• Interim dividend of 1.0 cent per share declared

Sequoia Financial Group has reported a 4.6% increase in revenue to $63.4 million and a 75.9% improvement in operating profit (normalised EBITDA) to $4.8 million for the first half of FY26. However, the company recorded a statutory net loss of $0.25 million, primarily due to non-recurring and non-operational items associated with legacy matters and portfolio simplification. The Board has declared an interim fully franked dividend of 1.0 cent per share, a reduction from the prior corresponding period, to preserve balance sheet flexibility as the company works through legacy issues and completes a strategic review of the InterPrac Financial Planning business. The Licensee and Adviser Services division has faced challenges following the collapse of the Shield and First Guardian master funds, which has affected adviser confidence, product access and revenue stability. In response, the company has added an independent governance committee, made changes to senior management in the compliance teams, and is undertaking a comprehensive review of the InterPrac business model. The company's Legal and Administration Services division, including Docscentre and Sequoia Superannuation, has delivered strong performance, with revenue increasing 8.7% and margin expansion. The company's APAC strategy, which leverages institutional collaborations between Australia and China, represents an exciting growth opportunity. The Board remains focused on completing the InterPrac review, continuing the pivot toward higher-quality earnings streams, advancing the APAC initiative, and maintaining strong governance and risk oversight.

The company expects the Legal and Administration Services division to deliver approximately $4 million in EBITDA in FY26, noting historically stronger second-half trading.

The broader advice industry remains in a period of structural change and regulatory scrutiny. While recent events have presented challenges within the Licensee and Adviser Services division, Sequoia's diversified structure, improved operating performance and strengthened management focus position the Group to navigate this period constructively.