Sequoia Financial Group Limited (ASX:SEQ) Managing Director Garry Crole discusses the company's FY21 profit update and guidance.Melissa Darmawan: Hello. I'm Melissa Darmawan for the Finance News Network. Joining me from Sequoia Financial Group
(ASX:SEQ) is CEO Garry Crole. Garry, nice to speak with you.
Garry Crole: Hello, Melissa. Good to speak to you again as well.
Melissa Darmawan: Good to have you. For those tuning in for the first time, can you tell us a bit about the company?
Garry Crole: Yeah, sure. So, Sequoia is obviously an ASX-listed company. And what we're looking to do is basically provide services to three key distribution partners, and they are an accountancy practice, a financial planner, or another AFSL licence. And what we're looking to do is think about all the services that distribution chain might need and then provide products to them. Very much like a mining services company does for the explorers.
Melissa Darmawan: Thanks, Garry. Today, a profit update and guidance for the 2021 financial year was released. Tell us more about that.
Garry Crole: Yeah. Well, we've had five half years in a row where we've continued to improve our half-yearly EBITDA. And in the first half we generated approximately $4 million of EBITDA, and in the second half we now expect to end the year between $8.5 and $9 million of EBITDA on approximately $110 to $120 million of revenue. And, as I mentioned before, we're looking to provide a number of services. That income and result was not specific to any one particular area. It's across 20 particular entities, and all of them are in solid growth, which is really pleasing.
Melissa Darmawan: And what do you attribute the performance of the company to?
Garry Crole: I think it's the staff. We really have spent a lot of time getting the right people. It's been a bit of a journey, and there's been some changes, but the staff that we have that are leading the four main divisions of the company are first class. The advisors that we've been able to onboard throughout the last two or three years post Royal Commission, again, are really representing our brand very efficiently. And I think the community as well is now looking to get advice with the understanding that it needs to be of value. And we're trying as a larger organisation to try and help the industry bring down the cost of advice and make it fairer value and keep impartial to the actual products that we might be recommending to clients.
Melissa Darmawan: Last question, Garry. Is there anything else you'd like to add?
Garry Crole: No, I think the journey's been good. I'd like to thank our shareholders for the support that they've given us in this transition period. And I think we're on a good journey. It's still very early days. We don't want to stay a $60 million market company; we would like to be a much larger company. And we'd like to do the greater good for the community in respect to providing quality financial advice and services to advisors who strive to deliver what's very, very important to Australians. and that's good advice.
Melissa Darmawan: Garry Crole, thanks for the update. Nice speaking with you again.
Garry Crole: Lovely to talk, Melissa. Thank you.
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