Tenet Group up for possible sale

Advice network Tenet Group has hired an external advisor to review the business. The review will consider a range of options, including a possible sale.

By Zachariah Sharif 06 Dec, 2022 at 07:44

Advice network Tenet has hired an external advisor to conduct a review of the business, which could lead to a possible sale.

Several industry sources have told Citywire New Model Adviser that Tenet is gearing up for a sale. In response, a spokesperson said the firm’s strategic business review would consider a wide range of options but that ‘no decisions have been made’.

The spokesperson said: ‘We are working with an external advisor to review and consider how we might adapt to a changing regulatory environment and market backdrop for the benefit of all our stakeholders. No decisions have been made and it remains business as usual for our members and their clients.’

It is understood this review could encompass a range of activities, from performance optimisation to ensuring the firm has the right expertise. It is being conducted to ensure the business delivers value for its stakeholders.

In October, Tenet revealed it had set aside £13.7m for redress over advice to members of the British Steel Pension Scheme. The compensation, part of the FCA’s redress scheme, is expected to be paid between December 2023 and February 2024.

In September, shareholders at Abrdn and Aegon recognised a £15m impairment in their Tenet shares.

Abrdn, Aviva and Aegon are Tenet’s largest shareholders. All have held equity in the network since 2011, but they largely take a hands-off approach.

The firm posted a £21.3m loss before tax in its financial statements for the 12 months to September 2021, compared with a £4.1m loss in 2020. This was partly due to the £13.7m British Steel compensation and a £10.3m impairment charge relating to ‘historical acquisition activity’ within the network.

The firm saw its revenue drop from £160m in 2020, to £157m last year. In September, the firm’s shareholders agreed to buy a further £14m of equity in the business. Tenet said this support from its shareholders would enable it to meet its 2023 regulatory capital requirements.

Source: citywire.com