WT Financial Group Grows NPAT 20.5% as Adviser Network Expands

Strong Financial Performance

WT Financial Group Limited (ASX, WTL) has delivered another year of robust profit growth, reporting a statutory net profit after tax (NPAT) of $4.6 million for FY2025. This represents a 20.5% increase from $3.9 million in the previous year, underscoring the company’s successful transformation and operational momentum. Revenue growth was equally impressive, with gross operating revenue rising 17.3% to $217.4 million and net operating revenue up 21.5% to $28.4 million.

EBITDA margins expanded significantly, reflecting the scalability of WTL’s platform, while operating cash flow remained strong at $5.9 million, closely aligned with profit before tax. The company’s balance sheet also strengthened, with cash reserves increasing 22.6% to $9.8 million and net assets rising 8.5% to $31.9 million.

Building a Leading B2B Advice Network

WTL’s growth story is rooted in its strategic pivot from a primarily consumer-facing business to one of Australia’s largest B2B financial advice networks. Chairman Guy Hedley highlighted that the company’s focus has been on building a sustainable platform that supports advisers and clients long-term, rather than just expanding in size. Central to this strategy is WTL’s proprietary Risk Management Framework (RMF), which has evolved beyond compliance to become the operational backbone of the group.

The RMF enables real-time peer review of adviser documents, enhancing the quality and consistency of advice across a network of around 400 privately owned practices. This framework has contributed to high adviser satisfaction, with independent research showing an 86% overall satisfaction rate and professional development events achieving net promoter scores above 70, including a recent 96.

Strategic Joint Ventures and Growth Outlook

In FY2025, WTL established Investco, a 50/50 joint venture with Merchant Wealth Partners, designed to accelerate consolidation in the financial advice sector. Investco’s first ‘Hubco’, Titan Advice Group, has already made a tuck-in acquisition and plans further mergers and acquisitions. A second Hubco is also underway, aiming to replicate this scalable corporatisation model.

WTL’s management points to structural industry tailwinds, including adviser scarcity, a $4 trillion superannuation pool, and a $3.5 trillion intergenerational wealth transfer, as key drivers of future growth. Regulatory reforms from the Quality of Advice Review are expected to ease entry barriers and reduce red tape, further supporting adviser recruitment and network expansion.

Valuation and Market Position

Despite strong financial results and a compelling growth strategy, WTL’s price-to-earnings ratio of approximately 10.7x remains below sector benchmarks of 15x to 20x. This valuation gap suggests potential upside as the company continues to scale and demonstrate sustainable profitability. With a market capitalisation near $49.6 million and a disciplined capital management approach, WTL appears well-positioned to deliver shareholder returns while investing in future expansion.