Earnings at the group soared by 15% to £1.5m in 2015, while its balance sheet stood strong at £22.3m with no external debt and £29.5m of net assets.
Turnover at the group’s non-investment network TenetLime increased by 48% last year with earnings rising by 105%, which the group said was supported by a successful embedding of the Mortgage Market Review.
Turnover within Tenet’s directly authorised proposition, Tenet Select, also increased by 5%.
The success in financial results has allowed the group to invest heavily in its proposition and systems, with £1.7m spent on fixed assets. A large proportion of this investment has been plugged into a new version of its technology platform, Tenet Advantage, which went live on 11 January.
British Mortgage Award winner Gemma Harle, managing director of TenetLime (pictured), said the group has also developed an internal CRM system to deliver more efficiency to current and prospective advisers.
“It’s a nightmare for advisers changing networks so this investment will make the process more transparent and easier for them.
“We also provide funding for firms to make that step to move networks and help with cash flow. Some networks have quite onerous charges and they might choose to stop an adviser’s commission and impose high professional indemnity charges. Firms don’t always have the cash for that and it can be quite a significant cost for the medium-sized firms that we tend to take on board.”
Tenet Group chief executive Martin Greenwood added: “Our ongoing financial stability ensures that we are well positioned to capitalise on any opportunities that may arise from the Financial Advice Market Review. Supported by continued strong growth in the mortgage market, TenetLime has performed above plan and we are in a great place to grow, enhance its market share and help member firms become even more profitable in the year ahead.”
Harle explained that the group was playing ‘a waiting game’ in the build up to the Financial Advice Market Review, which has been launched by HM Treasury and the Financial Conduct Authority to explore the barriers consumers face in obtaining advice.
“We’re not sure what’s going to come out of it because there has been some mixed messages. We are playing a waiting game but at the same time we have got the resources to enable us to respond to any opportunities that do arise.”
She added that TenetLime’s advisers will be given the choice on whether to introduce or advise on second charge business from 21 March when the Mortgage Credit Directive comes into force.
“Advisers won’t be able to dip in and out of advising on second charge business but firms will have the option, and we’re working with them to look at how it will impact on their model and what will need to be changed from a regulatory point of view.
“We’ve got some investment firms that write mortgage business and advertise themselves as independent so we need to facilitate and support them on advising on secured loans.”
