Sequoia Financial Group (ASX:SEQ) Reports H1 2024 Performance and Strategic Business Adjustments

February 27, 2025 01:28 PM AEDT | By Team Kalkine Media

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Sequoia Financial Group (ASX:SEQ) Reports H1 2024 Performance and Strategic Business Adjustments — Image source: shutterstock

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Highlights

Revenue and Profit Update: Revenue at $60.6 million, with a decline in profit after tax.

Dividend Announcements: Interim dividend declared with a payout scheduled for March 2025.

Operational Restructuring: Divestment of non-core businesses and workforce optimization to enhance efficiency.

Sequoia Financial Group (ASX:SEQ) has announced its financial results for the first half of the 2024 fiscal year, reporting revenue of $60.6 million, reflecting a 10.3% decrease compared to the prior corresponding period. Profit after tax attributable to owners saw a decline of 87.1%, reaching $3.6 million. Despite these figures, the company remains focused on strategic adjustments aimed at long-term stability and growth.

Dividend Distribution and Key Dates

Sequoia Financial Group confirmed the distribution of a final dividend of 2.50 cents per share and a special dividend of 2.50 cents per share for 2024, both of which were paid on 11 September 2024. Additionally, the company declared an interim dividend of 2.00 cents per share for 2025. Investors should note the record date of 5 March 2025, with the payment scheduled for 18 March 2025. These dividends are fully franked, offering benefits to shareholders.

Strategic Restructuring and Operational Efficiency

In an effort to streamline operations and drive efficiency, Sequoia Financial Group has undertaken significant structural changes. This includes the divestment of four non-core businesses and the reorganization of its operating model into two primary segments: Licensee and Adviser Services and Legal and Administration Services.

Further investment in technology improvements has enhanced operational capabilities while reducing reliance on manual processes. These changes have led to a workforce reduction of over 10%, which is expected to result in annual savings of approximately $1.5 million.

Leadership Perspective and Industry Outlook

CEO Garry Crole emphasized the evolving industry landscape, highlighting a growing demand for financial advice at a time when the number of professional advisors is declining. He noted that these structural and demographic shifts present a sustainable growth trajectory for the company's core business divisions.

Despite the near-term financial impact, Sequoia Financial Group remains positioned to leverage its streamlined business model and technological advancements to enhance long-term value creation.

With a focus on operational efficiency, technology-driven solutions, and strategic business adjustments, Sequoia Financial Group aims to navigate industry trends and maintain a strong position in the financial services sector.

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