Tenet has announced its decision to cut staff as part of a strategic response to network closure. This decision has sent ripples across the real estate sector, prompting discussions about the challenges faced by companies in an ever-evolving market. In this blog post, we delve into the implications of Tenet’s staff reduction and network closure, shedding light on the broader landscape of the UK real estate business.

The Changing Face of UK Real Estate

The UK real estate market has been experiencing a series of shifts in recent years, largely driven by technological advancements, changing consumer preferences, and economic fluctuations. With the rise of online platforms, virtual property tours, and AI-driven analytics, traditional real estate business models have faced disruptions. This disruption has led companies like Tenet to reevaluate their strategies and adapt to the new norms.

Tenet’s Network Closure: Unravelling the Decision

Tenet’s announcement to cut staff in the wake of network closure underscores the challenges that established real estate companies face in maintaining their presence and relevance. The decision to downsize is often a response to changing market dynamics, cost considerations, and the need to streamline operations. While staff reduction is a tough call, it’s often a strategic move aimed at ensuring the company’s long-term viability.

Impact on Employees and Company Culture

One of the most significant aspects of Tenet’s staff reduction is its impact on employees. Downsizing inevitably leads to job losses, causing uncertainty and anxiety among the workforce. Maintaining open communication and providing support during such transitions is crucial for preserving company culture and morale. Real estate companies must focus on retraining and upskilling employees to equip them for new roles or opportunities in the evolving industry landscape.

Adapting to Digital Transformation

The network closure and subsequent staff reduction at Tenet serve as a stark reminder of the importance of embracing digital transformation. As consumer behaviors shift towards online property searches and virtual interactions, companies must invest in robust online platforms and innovative technologies. Virtual property tours, 3D modeling, and data-driven insights are becoming integral to the modern real estate experience.

Reshaping Business Strategies

Tenet’s decision highlights the need for real estate companies to revisit and reshape their business strategies. This involves not only embracing digital tools but also reimagining the way properties are marketed, transactions are conducted, and relationships with clients are nurtured. Adapting to the changing landscape requires a forward-thinking approach that blends technology with personalized service.

Opportunities Amid Challenges

While the challenges faced by Tenet are a testament to the ongoing transformation of the real estate industry, they also present opportunities for innovation and growth. Smaller, agile firms can seize the chance to fill the void left by larger players, offering tailored services, unique property listings, and a more personalized customer experience. By leveraging technology and fostering creativity, companies can find new avenues to thrive in this dynamic environment.

Conclusion

The news of Tenet’s staff reduction and network closure shines a spotlight on the intricate challenges that the UK real estate sector is navigating. It’s a reminder that in an era of rapid technological advancement and shifting consumer behaviours, adaptation is not a choice but a necessity. By embracing digital transformation, rethinking business strategies, and nurturing a resilient company culture, property market businesses can not only change but also emerge as leaders in the new real estate landscape. As the industry constantly changing, companies must stay vigilant, innovative, and customer-focused to secure their place in the future of real estate.

As per FCA register, another 18 firms of advisors left the compliance network Tenet Group since the beginning of the year 2023. In 2022 also, a total of 110 firms of advisors left Tenet Group (TenetConnect Ltd and TenetLime Ltd). On the other hand, not even a single advisor joined Tenet Network in 2023 and only four joined in the whole year of 2022. This is very embarrassing for this infamous compliance network for financial advisors.

The names of the firms who left Tenet in 2023 are as follow:

1. Colin Baldock left TenetConnect Ltd on 13 January 2023.
2. Robinson Investment Solution Ltd left TenetConnect Ltd on 20 January 2023.
3. The Financial Advice Service Ltd left TenetConnect Ltd on 30 January 2023.
4. Ramzu Abu-Eda left TenetConnect Ltd on 24 March 2023.
5. 313 Wealth Management Ltd left TenetConnect Ltd on 30 March 2023.
6. Martin Randal left TenetConnect Ltd on 31 March 2023.
7. Lumley Wealth Management Ltd left TenetConnect Ltd on 3 April 2023.
8. Evolution Financial Planning Ltd left TenetConnect Ltd on 6 April 2023.
9. Mark Robinson left TenetLime Ltd on 11 January 2023.
10. Protection Financial Services Ltd left TenetLime Ltd on 27 February 2023.
11. Sound Mortgages Ltd left TenetLime Ltd on 28 February 2023.
12. Core Financial Solutions Ltd left TenetLime Ltd on 3 March 2023.
13. Gianluca Bertolino left TenetLime Ltd on 29 March 2023.
14. Happy Homes Mortgages Ltd left TenetLime Ltd on 30 March 2023.
15. Wright Consultancy Services Ltd left TenetLime Ltd on 31 March 2023.
16. JA Independent Mortgage Advisors Ltd left TenetLime Ltd on 31 March 2023.
17. Andy Wilson Financial Services Ltd left TenetLime Ltd on 31 March 2023.
18. Blair Cottrell left TenetLime Ltd on 5 April 2023.

Tenet Group is going downhill very rapidly as their financial losses are growing fast and the long-standing established firms are leaving this network almost every week. Tenet Group made a record loss of £21.6 million in the year ending 31 September 2021. This record loss slashed Tenet Group’s equity from £30 million to just over £9 million. As a result, the shareholders were forced to inject fresh equity in the company to save Tenet Group from FCA’s wrath. It is pertinent to note that the shareholders of Tenet Group never received any dividend in least last 15 years. Please see our blog detailing last 15 years’ worth of financial results of Tenet Group. 

The Board of the Director has recently sacked Tenet Group’s CEO Mark Scanlon and CFO Martin Tyler. There are rumours that there will be many more senior managers and directors who are going to be sacked in coming days.   

Tenet Group has appointed Helen Ball as chief executive with immediate effect, with current CEO Mark Scanlon and chief financial officer Martin Tyler to leave the firm.

Scanlon and Tyler will leave with immediate effect, the firm said.

Recent years have proved the worst for Tenet Group. Tenet as Group made a record loss of £21.6 million in 2021. Never in the history of Tenet Group (we checked 15 years), they made that big a loss. Tenet has been in losses in most of their history in past 15 year, but this year (2021) has broken all records.  

This huge loss has slashed the equity of Tenet Group to one third reducing from £30.7 million to only £9.1 million. This has very severe consequences for the management and the shareholders. It has basically raised the alarm of going concern for external auditor as well as FCA. As a result, the shareholders have to inject further equity in the company.

As Per FCA register, 110 firms of advisors left Tenet Network in 2022. This is by far more than any network in the UK. On the other hand, only four firms joined Tenet in the year 2022. Keeping in mind the financial situation of Tenet Group and other disturbing news coming from this disturbed network, it is very strange that these four firms joined Tenet.

Scanlon has been chief executive for around four years and, before that, was chief executive at Personal Group for over seven years.

Prior to that, he worked at FMG Support for nearly four years and has also held senior roles at Dyson and BAE Systems.

Tyler has been with the firm for nearly two years and prior to that was a consultant as Sicsic advisory.

He was also CFO at Gelert Group for nearly two years and has had pervious stints at The Tyler Partnership and Howden Insurance Brokers.

Ball, who has had over 40 years’ experience in the sector, was most recently managing director of Tenet and has held the role for around year. Before that, she was distribution and development director for around nine years.

Prior to Tenet, she worked at Sinfonia Asset as a sales and business director for around 11 years and, prior to that, was at Tenet for over three years as a programme director.

The company said that she had previous experience undertaking strategic reviews and had been working on the firm’s review to date so was “ideally placed to pick up the reins”.

‘Strategic review of group’s options’

Philip Hilling, chairman of Tenet, said: “At the end of 2022, we started a strategic review to examine all the group’s options, which included a review of our leadership team, and as a result, we have appointed Helen Ball, due to her wealth of financial services experience.

“As a result, Mark and Martin will be leaving the business. We would like to thank them for their years of service, valuable contribution and wish them well for the future.”

He added: “We are pleased we will be able to have an orderly handover and ongoing continuity through Helen’s promotion. Importantly for colleagues, members and our customers, Helen brings over 40 years’ experience and vast knowledge of the financial services industry, having held numerous positions within Tenet over the last 12 years.

“Helen will provide the strength and stability the business needs, as she works closely with our advisers to conclude the strategic review by the end of May 2023.”

Four more firms of financial advisors left Tenet Network in January 2023. Again, none joined in the same period. Tenet Network continued to enjoy the worst reputation in the financial industry. In 2022, a record 110 firms of financial advisors, both mortgage advisors as well as independent financial advisors, left Tenet Network. On the other hand, only four joined. Management of Tenet Group is considered highly notorious and incompetent.

There is hundreds of negative reviews about Tenet Network on internet. Many advisors sites like cherryplc where advisors discuss about the workings and practices of networks contain extremely negative reviews about the management of Tenet Group.

As per a news report, shareholders of Tenet Group have appointed an external consultant to consider options to sell Tenet Group as for the year ended September 30, 2021, Tenet Group made huge losses. Tenet Group never paid any dividend to its shareholder in last 10-12 years. So, the shareholders are not earning any money on their investment. Therefore, it looks like, they want to get rid of this investment.    

As per FCA register, following is the list of financial advisors or mortgage advisors who left Tenet Network in January 2023:

1. The Financial Advice Service Ltd left on 30 January 2023. They joined Tenet on 10 April 2019.
2. Robinson Investment Solutions Ltd left Tenet Network on 20 January 2023. They joined Tenet Group on 15 August 2012. This is eleven years relation ended.
3. Colin Baldock left Tenet Network on 13 January 2023. They joined Tenet Group on 06 March 2006. This was 17 years relation ended.
4. Mark Robinson left Tenet Group on 11 January 2023 after 14 years working with Tenet. They joined Tenet Group 27 August 2009.

Alarmingly, not even a single firm of advisors joined Tenet in January 2023.

The ranking wise as well, the position of Tenet Group has gone down from 4th in 2021 to 8th in 2022. Losses of Tenet Group are also increasing every year. In the year ended September 2021, Tenet Group made a loss of £21.6 million reducing equity of Tenet Group to one third.

After a year in the position, Simon Broadley resigned as managing director of the advice network Tenet&You. Currently, he serves as the chief commercial officer for the Furness Building Society.

Late last year, Broadley quit Tenet&You, the appointed representative of the Tenet company. He has also resigned from his seat on the Association of Mortgage Intermediaries’ board of directors.

He was previously the managing director of Tenet Mortgage Solutions and TenetLime, the mortgage and protection divisions of the network.

A spokeswoman for Tenet stated, ‘We would want to thank Simon for his contributions over the past three years, during which we streamlined the business, made more investments in technology to support advisers, and expanded our brands. We wish him the best in the future.

Citywire New Model Adviser reported in December that Tenet had appointed an external advisor to evaluate the business, including the possibility of a sale.

In 2022, a fifth of Tenet’s appointed representatives departed the network. Tenet stated at the time that this was part of a “quality drive,” removing companies that did not write enough business or whose primary focus was not advise.

In its financial results for the year ending October 2021, Tenet reported a £21.3 million loss before taxes, compared to a £4.1 million loss in 2020. This was partially attributable to the £13.7 million set aside as potential compensation for members of the British Steel Pension Scheme and a £10.3 million impairment charge related to “past acquisition activity” within the network.

Tenet Group – Huge Losses – Ship is Sinking? – Tenet Network

FCA

The table below shows the best mortgage networks / IFA networks in 2022. 

From the FCA register, we have prepared a list of compliance networks showing the number of appointed representatives (ARs) they had at the end of year 2021 and how many left and joined them in 2022 and how many they have now at the end of 2022. From the table below, it is very clear that among the top 10 networks, the biggest losers are Tenet Group and Sesame, and biggest gainers are Stonebridge Group and The Right Mortgage in 2022.

Many advisors, 110 to be exact, left Tenet Network and 102 advisors left Sesame Network. In the case of Tenet Group, it amounts to 23% of the total ARs at the start of 2022 who left Tenet Group in 2022. In case of Sesame, it amounts to 28% of the total
ARs who left Sesame in 2022.

On the other hand, 99 firms of appointed representatives joined The Right Mortgage and 152 firms of appointed representatives joined Stonebridge Group.

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Tenet Group could only attract 4 new appointed representatives in 2022. This is embarrassingly low. When other networks are attracting new advisors in hundreds, Tenet could only attract 4. Sesame also could attract very few appointed representatives, 9 to be exact.The coming year 2023 is expected to be even tougher for these networks especially for Tenet which are already in record financial losses.

Another big loser is Quilter. 188 firms of appointed representatives left Quilter during the year 2022 and only 36 joined in the same period. In other words, 14% of the total Appointed Representatives left Quilter in 2022.  

From smaller compliance networks, Ingard lost 25% of its ARs. 12 firms left Ingard and only 1 joined in 2022. Their total strength has reduced from 44 to 33 ARs. ValidPath, The Dragon Network and Beneficial Life gain 29, 46 and 33 ARs in 2022 respectively.  

1- Quilter Includes Quilter Financial Planning Solutions Limited, Quilter Financial Services Ltd and Quilter Mortgage Planning Ltd.

2- PRIMIS includes First Complete Ltd, Personal Touch Financial Services Ltd and Advance Mortgage Funding Ltd 

3- Tenet Group includes TenetConnet Ltd, TenetLime Ltd and Tenet Connect Services Ltd.

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The hot question in mortgage industry nowadays is “how Many Advisor Firms Left Tenet Network in 2022”. As Per FCA register, 110 firms of advisors left Tenet Network in 2022. This is by far more than any network in the UK. On the other hand, only four firms joined Tenet in the year 2022. Keeping in mind the financial situation of Tenet Group and other disturbing news coming from this disturbed network, it is very strange that these four firms joined Tenet.

The names of these four firms who joined Tenet are as follow:

1. Feuell4life Limited joined on 18 October 2022
2. Foxbrook Mortgage & Finance Ltd joined on 23 August 2022
3. AM Mortgage Solutions Ltd joined on 25 April 2022
4. SMCG Wealth Limited joined on 03 March 2022  

Tenet Network consists of three compliance companies:

1. Tenet Connect Ltd
2. Tenet Lime Ltd
3. Tenet Connect Services Ltd

All four firms mentioned above joined Tenet Connect Ltd. No one joined Tenet Lime Ltd or Tenet Connect Services Ltd. Following table shows the five years history of these three compliance companies of Tenet Network:

TenetConnect Limited Total firms 162

TenetLime Ltd Total firms 156

TenetConnect Services Limited Total firms 54

Source: FCA register.

As at the end of 2022, there are total 372 firms of advisors under compliance with Tenet Network. In the last five years, 129 firms of advisors left Tenet Connect Ltd and only 52 joined in five years. On the other hand, 233 firms of advisors left Tenet Lime Ltd and only 53 joined in last five years. Similarly, 5o firms of advisors left Tenet Connect Services Ltd and none joined in five years.  

Tenet Group has seen a rapid decline in all areas of their operation including the turnover, profits, equity and number of advisors. The model in which Tenet Group operates is not working for them. In the accounts for the year ended 30 September 2021, Tenet Group showed a record loss of £21.6 million. As a result, the equity of Tenet Group reduced by one third from £31 million in 2020 to just above £9 million in 2021. The shareholders were forced to inject fresh equity to avoid going concern.

It is reported that the main shareholders of Tenet Group are considering to put Tenet Group on sale.   

Table below is a comparison of financial position of the top mortgage or financial networks in the country. This table clearly shows that the financial situation of Tenet Network (tenet group) is in a extremely bad state. The losses of Tenet Network are increasing very fast. Equity of Tenet Network (Tenet Group) has been reduced by one third.

The shareholders of the Tenet Group had to inject fresh equity in the company as the cash situation of the company is deteriorating very fast. Mian shareholders of Tenet Group, Abrdn and Aegon, have recognised impairment in their holding of Tenet shares recognising the fact that Tenet Group lost its financial worth significantly.

As per FCA register, in 2022, only four new firms joined Tenet Network’s main company, Tenet Connect Ltd and none joined Tenet Lime Ltd. On the other hand, 39 advisor’s firms left Tenet Connect Ltd, and 59 firms left Tenet Lime Ltd in the year 2022. This outflow of advisors has damaged the financial situation of Tenet Group extremely negatively.

Advisors who left Tenet Group have stated the horror stories thet have faced while they were woking under Tenet Group. Mostly the advsiors disucss their stories in various forums such as cherry plc or google reviews. They say that the management of Tenet Group is exremely incompetent and negligengt.

The financial situation of anothe network, Quilter, is also in a bad shap. They made a loss of more than £4 million in the year 2021 and a loss of more than £5 million in the year before (2020). Both loss making networks, Tenet and Quilter, are expected to go under in coming months. Shareholders of Tenet Group has actually started looking for a buyer.