Top twenty planning firm, AFS Group (AFS), has reported solid profit and growth for the 2009 financial year.
Commenting on its results, Group CEO and Managing Director, Peter Daly, described AFS as an ‘industry maverick’ that achieves its success from its dedication to strong business and practice development fundamentals.
Peter Daly
Key outcomes included:
- Recruitment of 20 new practices to the AFS banner over the past 12 months, meeting its objective. These new practices represent $10 million in additional revenue flowing into the 2009/2010 financial year.
- 10% reduction in expenditure in the 2009 financial year
- Substantial 34% average growth in practice income for those practices who have initiated a ‘Board of Advice’ to assist in the growth and development of their businesses
- 7% reduction in operating revenue, seen as a good outcome, given the impact on businesses of the Global Financial Crisis
Mr Daly reflected on the difference between ‘reaction’ and ‘response’ by planning groups when dealing with the prevailing economic conditions:
In this negative economic environment, far too many dealer groups ‘reacted’ instead of ‘responded’ to the situation…
“In this negative economic environment, far too many dealer groups ‘reacted’ instead of ‘responded’ to the situation, cutting back on their services and resources and in doing so have damaged relationships and lost ground as reflected by the number of advisers currently seeking better opportunities elsewhere,” said Mr Daly.
According to Mr Daly, AFS’s more pro-active responses to the GFC centre around maintenance and development of services and resources, such as:
- The launch of an innovative Summer School initiative
- Symposiums
- Client seminars
- Technical and tactical workshops
- Acquisitions and register purchases/sales
- New Boards of Advice
- Considerable personal support to practices in need
“Our decision not to reduce services nor resources, but to trade out of the GFC positively and profitably may not be correct, but the AFS results speak for themselves,” said Mr Daly, who also re-affirmed the Group’s stated aim of securing a potential public listing by December 2012.
