1. COMPANY DETAILS
Name of entity:
Sequoia Financial Group Limited
ABN:
90 091 744 884
Reporting period:
For the year ended 30 June 2024
Previous period:
For the year ended 30 June 2023
2. RESULTS FOR ANNOUNCEMENT TO THE MARKET
$
Revenues from ordinary activities (continuing and
discontinued)
down
1.7%
to
129,326,643
Profit from ordinary activities after tax attributable to the
owners of Sequoia Financial Group Limited
up
1012.1%
to
23,992,502
Profit for the year attributable to the owners of Sequoia
Financial Group Limited
up
1012.1%
to
23,992,502
Dividends
Details of Dividends (1)
Cents per share
$
2023 Special dividend (paid 29 September 2023)(2)
4.00
5,355,699
2024 Interim dividend (paid 29 March 2024)(3)
2.00
2,628,154
2024 Final dividend declared(4)
2.50
3,256,309(5)
2024 Special dividend declared(4)
2.50
3,256,309(5)
(1) All dividends are fully franked
(2) 2023 Special dividend comprised of a cash dividend on completion of divestment of Morrison Securities.
(3) 2024 Interim dividend comprised of a cash dividend.
(4) Record date for determining entitlement to the 2024 Final and Special dividends is 3 September 2024, and is to be paid on 11 September 2024.
(5) Estimated total dollar value based on shares at 30 June 2024.
Comments
The profit for the Group after providing for income tax amounted to $23,992,502 (30 June 2023: loss of
$2,630,431).
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
i
Appendix 4E
Preliminary final report
3. NET TANGIBLE ASSETS
Reporting period
Cents
Previous period
Cents
Net tangible assets per ordinary security
24.55
8.63
Calculated as follows:
Consolidated
2024
$
2023
$
Net assets
56,675,105
43,042,196
Less: Right-of-use assets
(363,745)
(1,348,225)
Less: Intangibles
(25,037,804)
(31,981,070)
Add: Lease liabilities
704,641
1,938,241
Net tangible assets
31,978,197
11,651,142
2024
Number
2023
Number
Total number of shares issued
130,252,366
135,054,525
4. CONTROL GAINED OVER ENTITIES
Not applicable.
5. LOSS OF CONTROL OVER ENTITIES
Name of entities (or group of entities)
Morrison Securities Pty Ltd
Date control lost
31 August 2023
$
Contribution of such entities to the reporting entity’s profit/(loss) from ordinary activities
before income tax during the period (where material)
372,447
Profit/(loss) from ordinary activities before income tax of the controlled entity (or group of
entities) whilst controlled during the whole of the previous period (where material)
1,825,696
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
ii
Appendix 4E
Preliminary final report
6. DIVIDENDS
Current period
Details of Dividends (1)
Cents per share
$
2023 Special dividend (paid 29 September 2023)(2)
4.00
5,355,699
2024 Interim dividend (paid 29 March 2024)(3)
2.00
2,628,154
2024 Final dividend declared(4)
2.50
3,256,309(5)
2024 Special dividend declared (4)
2.50
3,256,309(5)
(1) All dividends are fully franked
(2) 2023 Special dividend comprised of a cash dividend on completion of divestment of Morrison Securities.
(3) 2024 Interim dividend comprised of a cash dividend.
(4) Record date for determining entitlement to the 2024 Final and Special dividends is 3 September 2024, and is to be paid on 11 September 2024.
(5) Estimated total dollar value based on shares at 30 June 2024.
Previous period
Details of Dividends (1)
Cents per share
$
2022 Final dividend (paid 10 October 2022)(2)
0.90
1,226,517
2023 Interim dividend (paid 29 March 2023)(2)
0.70
945,384
(1) All dividends are fully franked
(2) Comprised of a cash dividend.
7. DIVIDEND REINVESTMENT PLANS
Not applicable.
8. DETAILS OF ASSOCIATES AND JOINT VENTURE ENTITIES
Reporting entity’s
percentage holding
Contribution to profit/
(loss) (where material)
Name of associate / joint venture
Reporting
period
%
Previous
period
%
Reporting
period
$
Previous
period
$
Taking Control Pty Ltd (joint venture)
50.00%
50.00%
-
-
Euree Asset Management Pty Ltd
20.00%
20.00%
(41,493)
-
Morrison Securities Pty Ltd
20.00%
49.90%
279,994
-
Group’s aggregate share of associates and joint venture
entities’ profit/(loss) (where material)
Profit/(loss) from ordinary activities before income tax
238,501
-
Income tax on operating activities
83,998
-
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
iii
Appendix 4E
Preliminary final report
9. FOREIGN ENTITIES
Details of origin of accounting standards used in compiling the report:
Not applicable.
10. AUDIT QUALIFICATION OR REVIEW
Details of audit/review dispute or qualification (if any):
The financial statements have been audited and an unmodified opinion has been issued.
11. ATTACHMENTS
Details of attachments (if any):
The Annual Report of Sequoia Financial Group Limited for the year ended 30 June 2024 is attached.
12. SIGNED
Signed ___________________________
Date: 26 August 2024
Mike Ryan
Chairman
Sydney
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
iv
Appendix 4E
Preliminary final report
Sequoia Financial
Group Limited
ABN 90 091 744 884
Annual Report
30 JUNE 2024
CONTENTS
Chief Executive Officer and Chairman’s report.............................................................3
Directors’ report..................................................................................................................6
Auditor’s independence declaration............................................................................23
Consolidated statement of profit or loss and other comprehensive income...........24
Consolidated statement of financial position...............................................................26
Consolidated statement of changes in equity.............................................................28
Consolidated statement of cash flows..........................................................................29
Notes to the consolidated financial statements..........................................................30
Consolidated entity disclosure statement.....................................................................79
Directors’ declaration......................................................................................................81
Independent auditor’s report to the members
of Sequoia Financial Group Limited...............................................................................82
Shareholder information..................................................................................................88
Corporate directory.........................................................................................................91
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
2
Chairman Report
Dear Shareholders, Employees, and Partners,
It is with great honour and enthusiasm that I present my first annual report as Chairman of
Sequoia Financial Group Limited (“Sequoia”).
Sequoia has demonstrated resilience and growth despite a challenging economic climate,
and I am pleased to form a part of a much more streamlined company than was reported
in FY2023.
Major achievements from the last year include the divestment of 80% of Morrison Securities,
streamlining the organisation into two profitable divisions, increasing the operating margins
for both new divisions, divesting non-core assets and recruiting high quality staff to drive our
future growth.
The Board and management team successfully navigated a disruptive period, addressing
shareholder concerns raised through an EGM process. While this led to notable business
disruption in the second half of FY24, we effectively contained its impact.
I am looking forward to evolving the Board’s strategic planning process and positively shape
the strategic direction of Sequoia. More so, the improving external environment for financial
advice in Australia, presents exciting growth opportunities for Sequoia.
I extend my sincere gratitude to our dedicated employees, trusted advisers and their
clients, and valued shareholders for their ongoing support. Special recognition goes to
Charles Sweeney, our former Interim Chair, for his leadership during a period of shareholder
challenges. I also commend Kevin Pattison for his exceptional resilience and integrity
throughout this time.
Furthermore, I’d like to acknowledge the pivotal roles played by our CEO, Garry Crole, and
CFO, Lizzie Tan. Their unwavering dedication has been instrumental in achieving our strong
performance this year.
As we enter this new chapter, I am committed to pursuing the strategic opportunities that
lie ahead. Sequoia is well-positioned to achieve sustained growth for investors.
Mike Ryan
Chairman of the Board
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
3
Chief Executive Officer and Chairman’s report
30 June 2024
CEO Report
As we reflect on the past financial year, it is with a deep sense of gratitude to our
shareholders that I present the 2024 Sequoia Financial Group Limited’s (“Sequoia”)
Annual Report.
This year has been a testament to our staff’s resilience, innovation, and commitment
to offering a comprehensive range of valuable solutions to the financial advisory and
accountancy marketplace.
Despite a challenging economic landscape for advisers and accountants we have
achieved significant milestones. Total continued revenue was $124.6m, up from $98.4m last
financial year, which is a growth rate of 26%.
Operating profit increased from $4.6m to $8.7m, an 88% improvement over FY23.
Landscape for Advisers
The thematics for the adviser industry are attractive.
The rapid decline in the number of advisers since the Royal Commission has begun to slow
in recent years with adviser numbers now steady at around 15,600. This has seen the number
of recurring clients per adviser increase across the industry by between 15-20%. Advisers
have become more efficient and have embraced technology and increased the use of
outsourced services such as those offered by Sequoia. Fewer advisers have been moving to
self-licensing models.
In addition, advisers are increasing their overall revenue as demand for advice increases as
the pool of available advisers reduces. In addition to this tailwind, we are winning market
share from other licensors, particularly when advisers are disappointed with the consolidation
of the industry occurring. In 2024 we had 70 new advisers join the AFSL and whilst we did see
56 depart most of the departures were from non-economic practises who closed or merged
their businesses rather than leaving us to join a competitor.
The shift from commissions to fee for service has also ensured businesses like ours are far more
sustainable and less reliant on new sales and transactional income. In our case the retention
rate of advisers of a scale we see as commercial using our services and accountants using
our legal and document business has been very high. This gives us confidence around future
revenue allowing the business to invest with greater confidence.
One of our goals over the next two years is to further expand our number of self-employed
advisers in financial planning under the Interprac Financial Planning brand and add expertise
and new business specialist equity advisers under the Sequoia Wealth Management brand,
so we can further expand on the footprint we have established in the Equity Capital Markets
and higher net worth marketplace.
Investments
Throughout the year we made several key investments, including the asset acquisitions of
Australian Business Structures Ltd and Castle Corporate Pty Ltd / Castle Legal Pty Ltd.
Delivering to Shareholders
Our Net Profit After Tax of $24.0m allows us to pay fully franked dividends, maintain our share
buyback program and fund future acquisitions with cash, thus avoiding any equity dilution
to our shareholders.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
4
Chief Executive Officer and Chairman’s report
30 June 2024
We have distributed an interim dividend of 2.0 cents per share fully franked on 29 March
2024. Today we are pleased to declare a further dividend to eligible shareholders at
2.5 cents per share final dividend share and a further 2.5 cents per share special dividend,
fully franked, taking the full year FY24 normal dividends to 4.5 cents per share.
The Future
I am confident the recent changes we have made as part of our business streamlining
strategy provides a robust platform for continued success and growth.
I thank you for being a shareholder and part of that journey.
Garry Crole
Managing Director and CEO
26 August 2024
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
5
Chief Executive Officer and Chairman’s report
30 June 2024
The directors present their report, together with the financial statements, on the consolidated entity
(referred to hereafter as the ‘Group’) consisting of Sequoia Financial Group Limited (referred to
hereafter as the ‘Company’ or ‘parent entity’) and the entities it controlled at the end of, or during, the
year ended 30 June 2024.
DIRECTORS
The following persons were directors of Sequoia Financial Group Limited during the whole of the
financial year and up to the date of this report, unless otherwise stated:
Garry Crole
Managing Director and Chief Executive Officer
Mike Ryan
Non-Executive Director and Chairman (appointed 7 August 2024)
Charles Sweeney
Non-Executive Director and Former Chairman (resigned as Chairman 7 August 2024)
Kevin Pattison
Non-Executive Director
John Larsen
Former Non-Executive Director and Former Chairman (resigned 16 May 2024)
PRINCIPAL ACTIVITIES
The Group’s principal activity is to provide a range of services to financial planner stockbrokers,
self-directed investors, superannuation funds and accountants that allows them to offer wealth
management solutions to their customers.
This includes, but is not limited to, the provision of licensing services, business support, advice coaching,
compliance, education, legal document establishments, portfolio management, bespoke investments,
administration, investor relations, research and media services.
There was no change in the principal activities during the financial year.
DIVIDENDS
Details of Dividends (1)
Cents per share
$
2023 Special dividend (paid 29 September 2023) (2)
4.00
5,355,699
2024 Interim dividend (paid 29 March 2024) (3)
2.00
2,628,154
2024 Final dividend declared (4)
2.50
3,256,309(5)
2024 Special dividend declared (4)
2.50
3,256,309(5)
(1) All dividends are fully franked
(2) 2023 Special dividend comprised of a cash dividend on completion of divestment of Morrison Securities.
(3) 2024 Interim dividend comprised of a cash dividend.
(4) Record date for determining entitlement to the 2024 Final and Special dividends is 3 September 2024, and is to be paid on 11 September 2024.
(5) Estimated total dollar value based on shares at 30 June 2024.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
6
Directors’ report
30 June 2024
REVIEW OF OPERATIONS
The profit for the Group after providing for income tax amounted to $23,992,502 (30 June 2023: loss of
$2,630,431).
Revenue from ordinary operating activities of the Group increased to $124,550,747, up from $98,498,810
in the corresponding year ended 30 June 2023 an increase of 26.4%.
The Group’s financial performance this year was very positive with total revenue increasing by $26.1m
(or 26.4%) over the last financial year. The Sequoia Licensees Services division achieved strong net
organic growth in adviser numbers and reported revenue growth over 42%, despite the ongoing
reduction of industry advisers.
The Group is committed to streamlining its business model to drive greater efficiency and provide more
simplicity to enable better interaction with stakeholders. Hence the decision to streamline the Group’s
existing divisional structure from the 2025 financial year onwards, whereby the reporting divisions will
move from four to two. This change is designed to enhance the focus of our executive team and
reduce the cost base, in terms of headcount by 10%. The new reporting Divisions will be: (1) Licensee
and Adviser Services and (2) Legal and Administration Services.
During the financial year ended 30 June 2024, the following transactions occurred:
• On 21 August 2023, the acquisition of the customer list of Castle Corporate Pty Ltd and Castle Legal
Pty Ltd was completed and, on 13 December 2023, the acquisition of the customer list of Australian
Business Structures Ltd was completed.
• On 31 August 2023, the disposal of 80% of Morrison Securities was completed. This resulted in a non-
recurring gain of $26.8m, after tax, that included the revaluation of the remaining 20% investment.
• Acquisition of Clique Paraplanning, which will provide a great paraplanning service offering to our
existing advisers.
• Sale of Yield Report to Finexia Financial Group and the formation of a strategic relationship with Finexia
to jointly market each other’s services to the financial planning and accountancy marketplace.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
7
Directors’ report
30 June 2024
Risk Management of Material Risks
Listed below are the material business risks that the Group seeks to manage to prevent adverse impart
on the Group’s business, financial performance, or operations. Note that these risks are out of the control
of the Group.
Risk Type
Description
Managing the Risk
Legal and
compliance
risk
The risk of financial loss for
failing to comply with legal
and regulatory obligations
- Oversight of compliance and regulatory matters by
the Group Risk and compliance function
- Monitoring regulatory change and implementing
appropriate controls
- Oversight of regulatory and compliance matters to
Board and Risk and compliance Committees
- Use of internal and external legal advisors
Poor quality of
advice risk
The risk of failure to provide
quality, appropriate and
adequate financial advice in
the best interests of clients
- This Risk is managed by having highly professional,
educational, compliance, assurance, and training
standards in place for the Group’s advisers and
authorised
- There is an on-going education program and rolling
program of compliance reviews of advisers
- The potential financial impact is mitigated by
appropriate levels of insurance cover
Market
performance
risk
The risk that the operating
and financial performance
is influenced by economic
and business conditions,
including financial markets
performance, interest rates
and Government policies.
- Regular monitoring by the CEO, the Investment
Committee and the Board of possible outcomes, the
likely timeframe and the likelihood of the outcome
occurring
- Diversification of revenue streams which act in
different ways with market performance
Operating Profitability
The Directors are of the view that the best guide to the Group’s performance is the Operating profit
or normalised EBITDA, which is defined as earnings before interest, tax, depreciation and amortisation
(‘EBITDA’) excluding the impact of:
• Non-operational items (i.e. acquisition and divestment-related costs, redundancy costs, impairment
charges, fair value adjustments, abnormal events and gains/losses on the sale of investments); and
• Non-cash amortisation charges relating to separately identifiable intangible assets acquired under
business combinations and other intangible assets.
The Operating profit over the financial year ended 30 June 2024 increased from $4,610,286 to $8,676,432.
Operating revenue and operating profit compared to the prior financial year are presented in the
following table:
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
8
Directors’ report
30 June 2024
Financial performance from continuing operations
2024
$
2023
$
Change
$
Change
%
Operating revenue from ordinary activities
124,550,747
98,498,810
26,051,937
26.4%
Statutory net profit after income tax
(3,142,515)
(3,948,032)
805,517
(20.4%)
Operating profit*
8,676,432
4,610,286
4,066,146
88.2%
* Operating profit is the measure that the Group uses to assess performance as it excludes certain non-cash and one-off or non-operational items. Operating
profit is a financial measure that is not recognised under Australian Accounting Standards and may not be comparable to similarly titled measures used by
other companies. Operating profit has been audited.
Normalised adjustments have been applied as set out in the following reconciliation between the
Group’s Operating profit and the Statutory net profit for the current and prior financial years:
30 June 2024
Continuing
operations
2024
$
Discontinued
operations
Morrison
Securities
$
Consolidated
2024
$
Operating profit for the year
8,676,432
144,203
8,820,635
Deduct normalisation adjustments:
Abnormal events
(163,079)
-
(163,079)
Acquisition and divestment-related costs
(121,077)
-
(121,077)
Restructuring costs
(119,942)
-
(119,942)
Impairment of plant and equipment
(787,785)
-
(787,785)
Impairment of goodwill and intangible assets
(6,383,412)
-
(6,383,412)
Gain on disposal
135,000
28,622,959
28,757,959
Write-back to profit or loss for consideration not payable
334,257
-
334,257
Fair value revaluation of retained investment
-
6,880,593
6,880,593
1,570,394
35,647,755
37,218,149
Add/(deduct):
Interest revenue calculated using the effective interest method
919,705
231,132
1,150,837
Depreciation and amortisation
(3,777,728)
(2,888)
(3,780,616)
Finance costs
(175,917)
-
(175,917)
Statutory net (loss)/profit before income tax for the year
(1,463,546)
35,875,999
34,412,453
Income tax expense
(1,678,969)
(8,740,982)
(10,419,951)
Statutory net (loss)/profit after income tax for the year
(3,142,515)
27,135,017
23,992,502
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
9
Directors’ report
30 June 2024
30 June 2023
Continuing
operations
2023
$
Discontinued operations
Consolidated
2023
$
Morrison
Securities
$
Libertas
$
Operating profit for the year
4,610,286
760,964
139,680
5,510,930
Deduct normalisation adjustments:
Acquisition costs
(102,230)
-
-
(102,230)
Impairment costs
(1,687,476)
-
-
(1,687,476)
Consideration for business acquired
(1,494,182)
-
-
(1,494,182)
1,326,398
760,964
139,680
2,227,042
Add/(deduct):
Interest revenue calculated using the effective
interest method
45,760
940,100
-
985,860
Depreciation and amortisation
(3,593,779)
(15,048)
-
(3,608,827)
Finance costs
(230,146)
-
-
(230,146)
Statutory net (loss)/profit before income tax for
the year
(2,451,767)
1,686,016
139,680
(626,071)
Income tax expense
(1,496,265)
(508,095)
-
(2,004,360)
Statutory net (loss)/profit after income tax for the year
(3,948,032)
1,177,921
139,680
(2,630,431)
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Acquisition of Castle Corporate Pty Ltd and Castle Legal Pty Ltd (‘Castle’)
On 21 August 2023, the Company completed the acquisition of the customer list of the Castle
companies (‘Castle’). The Castle businesses are prominent and reputable firms specialising in providing
accountants, financial advisers and lawyers comprehensive advice and solutions relating to new and
existing companies, trusts and self-managed super funds.
Acquisition of Australian Business Structures Ltd
On 13 December 2023, the Company announced the acquisition of the assets of Australian Business
Structures Ltd (‘ABS’). ABS is a provider of legal services and has been providing the Company with a
range of proprietary legal documents. The acquisition broadens the product offering of the Professional
Services division and builds on the presence within the accounting and advice industry.
Divestment of Morrison Securities Pty Ltd
The transaction to divest 80% of Morrison Securities Pty Ltd is complete, with the final payment of
$15.0m received on 31 August 2023. A further working capital adjustment of $1.2m was received in
the financial year ended 30 June 2024. A total gain of $28.6m is recognised in the current financial
year. Based on the sales price, the fair value of the retained 20% is $10.0m resulting in a fair value gain
of $6.9m. Morrison Securities is now accounted for as an investment in an associate and reported
using the equity method.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
10
Directors’ report
30 June 2024
Impairment of goodwill
For the year ended 30 June 2024, the annual assessment of the value of the intangible assets of
indefinite life indicated an impairment was needed for the cash generating units (‘CGUs’): Sequoia
Equity Markets Group and Sequoia Direct Investment Group. The reasons for these impairments are
as follows:
After the sale of Morrison Securities Pty Ltd, the only business in the Sequoia Equity Markets Group was
Sequoia Specialist Investments Pty Ltd. Over the last 2 years, the market for investment products issued by
Sequoia Specialist Investments has declined resulting in a reduction in revenue generated. Based on the
assumptions used to assess impairment, the current value of intangible assets was impaired by $3.8m.
Sequoia Direct Investment Group include the recent acquisition of Informed Investor, ShareCafe and
Corporate Connect Research. The financial performance of these businesses since acquisition has not
been as expected. While the financial performance of these businesses is expected to improve through
operational changes and team restructuring, the improvement is not enough to support the current
value of intangible assets. Based on the assumptions used to assess impairment, the current value of
intangible assets was impaired by $2.5m.
Sale of Sequoia Insurance Brokers and InterPrac General Insurance
On 28 June 2024, the Company entered into an agreement to sell the general insurance broking
businesses, Sequoia Insurance Brokers Pty Ltd and Interprac General Insurance Pty Ltd, effective 1 July
2024. For these financial statements, year ended 30 June 2024, the businesses have not been reported
as discontinued operations in the consolidated statement of profit or loss and other comprehensive
income, because they have not been deemed significant. In the consolidated statement of financial
position, the businesses have been reported as held for sale.
ANZ loan facility
The loan amount drawn for $1,750,000 was fully repaid during the financial year ended 30 June 2024.
As at 30 June 2024, the ANZ financing facility consisted of an uncommitted and undrawn loan facility
(with no redraw) of $13,250,000, of which none was utilised, and a standby letter of guarantee
of $700,000. The standby letter continues to be used as bank guarantees for office leases. The
uncommitted and undrawn loan facility is due to mature on 1 October 2024.
There were no other significant changes in the state of affairs of the Group during the financial year.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Sale of Sequoia Insurance Brokers and InterPrac General Insurance
On 1 July 2024, the Group sold 100% of its general insurance broking businesses to WIB Corporate Pty Ltd.
The total consideration price is in the range $4.40m to $5.00m for the sale of Sequoia Insurance Brokers
Pty Ltd and InterPrac General Insurance Pty Ltd. The Group has received initial cash consideration paid
of $1.05m for the sale in the subsequent period. The second tranche of $1.00m is payable by 31 October
2024, with the final tranche payable in October 2025 subject to specific performance hurdles being
achieved.
Restructure of operating segments
The Group announced the restructure of the operating segments, effective from 1 July 2024, which are
used in assessing performance and in determining the allocation of resources. This restructure reduces
the existing four operating segments down to two. The Head Office segment remains unchanged.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
11
Directors’ report
30 June 2024
The two operating segments are as follows:
(1) Licensee and Adviser Services - Provide licensee services to financial planners and advisors, provide
financial planning personal and general advice to wholesale and retail investors, and provide listed and
private companies with equity capital markets support, M&A advice, corporate access and investor
relations.
(2) Legal and Administration Services - Act as service provider to accountancy firms, dealer groups,
financial planning, law firms and direct trustees.
Appointment of Non-Executive Chairman
On 7 August 2024, the Group announced the appointment of Mike Ryan as the new Chairman of the
Board. The Acting Chairman, Charles Sweeney (resigned on 7 August 2024), will continue in his role as
non-executive director and Chair of the Risk and Compliance Committee.
Legal proceedings for and against Tim McGowen update
The Company and Tim McGowen have agreed to settle at an undisclosed amount and, on 15 August
2024, executed a deed of release.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs
in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group does not expect any major developments or variation to results if the Group continues
to operate as normal. However major variations would occur if the Group undertook a key strategic
initiative such as a material acquisition. Currently nothing of this nature is expected to take place in the
foreseeable future but the Group remains open to look at opportunities in this space whenever they are
presented.
ENVIRONMENTAL REGULATION
The Group is not subject to any significant environmental regulation under Australian Commonwealth or
State law.
INFORMATION ON DIRECTORS
Name: Garry Peter Crole
Title: Managing Director and Chief Executive Officer
Appointed: 18 November 2016
Qualifications: Adv.Dip Financial Services (Deakin), GAICD
Experience and expertise: Garry is a highly experienced and well-regarded
Financial Services Executive. He founded Deakin Financial Planning, an ASX listed
company that was later acquired by IOOF. In more recent years, Garry started Interprac Financial
Planning Pty Ltd, which is a leading independently owned Australian Financial Services Licensee.
Other current directorships: None
Former directorships (last 3 years): None
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
12
Directors’ report
30 June 2024
Special responsibilities: Member of Risk and Compliance Committee, Audit Committee and
Remuneration and Nomination Committee
Interests in shares: 10,665,635 ordinary shares (directly held) and 2,097,535 ordinary shares (indirectly held)
Interests in options: None
Interests in rights: None
Name: Mike Ryan
Title: Non-Executive Director and Chairman
Appointed: 7 August 2024
Qualifications: B.Agriculture
Experience and expertise: Mike is an accomplished executive and director
with extensive capital markets expertise. Through his 40 year career, Mike has
specialised in steering companies towards growth and successful turnarounds. He has held a number
of key positions across a range of industries, including executive and board roles at Goldman Sachs &
JBWere, Morgan Stanley, Citibank, CIMB and Shaw and Partners.
Other current directorships: Director of East 33 Limited (since November 2022), Director of Energy One
Limited (since January 2024), and PM Capital Global Opportunities Fund Ltd (since August 2024)
Former directorships (last 3 years): Interim Chairman of Australian Pacific Coal Limited (January 2023 to
June 2024) and Director of Australian Pacific Coal Limited (November 2022 to June 2024)
Special responsibilities: Member of Audit Committee and Remuneration and Nomination Committee
Interests in shares: None
Interests in options: None
Interests in rights: None
Name: Charles Sweeney
Title: Non-Executive Director
Appointed: Non-Executive Director: 1 March 2019
Acting Chairman: 18 April 2024 to 7 August 2024
Qualifications: B.Comm, LL.B (Melb), Partner of Cooper Grace Ward Lawyers
Experience and expertise: Charles is a partner in Cooper Grace Ward’s corporate
and commercial group. Charles provides wide-ranging general commercial advice to clients,
with particular areas of focus including corporate advisory and intellectual property / information
technology. Acting for listed and unlisted public and private clients, Charles advises across a broad
range of industries, including agribusiness, financial services, technology and mining. Charles has served
as a non-executive director of an ASX listed company (including during its ASX listing) and has practical
experience of the issues faced by boards in relation to corporate governance, dealings with regulators
(especially ASX and ASIC), major transactions and capital raisings. Charles is also a regular presenter on
such topics.
Other current directorships: None
Former directorships (last 3 years): None
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
13
Directors’ report
30 June 2024
Special responsibilities: Chair of Risk and Compliance Committee and member of Audit Committee
Interests in shares: 811,490 ordinary shares (indirectly held)
Interests in options: None
Interests in rights: None
Name: Kevin Pattison
Title: Non-Executive Director
Appointed: 5 February 2019
Qualifications: B.Bus(Ins), Fellow ANZIIF, GAICD
Experience and expertise: Kevin has over 40 years’ experience in financial
services, specialising in distribution, strategic planning and business remediation.
He has been a Non-Executive Director for the past 4 years on private companies and prior to that
he was the CEO of various large national businesses in the financial services sector.
Other current directorships: None
Former directorships (last 3 years): None
Special responsibilities: Chair of Remuneration and Nomination Committee and Chair of Audit
Committee and member of Risk and Compliance Committee
Interests in shares: 815,702 ordinary shares (indirectly held)
Interests in options: None
Interests in rights: None
‘Other current directorships’ quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless
otherwise stated.
‘Former directorships (last 3 years)’ quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types
of entities, unless otherwise stated.
COMPANY SECRETARIES
The joint Company secretaries are as follows:
Lizzie Tan, B.Economics (Accounting), CPA and Fellow member of FINSIA - Joint Company Secretary
Lizzie has been the Company’s Chief Financial Officer since 23 April 2020. Lizzie is an experienced
finance, audit, risk and corporate transactional executive who has held senior Finance and Audit roles
with ANZ, AXA, Legg Mason Australia and Deloitte.
Sally McDow Bachelor of Laws (LLB) and Master of Business Administration - Joint Company Secretary
Sally is an employee of Boardroom Pty Ltd, the Company’s Corporate Secretarial services provider. Sally
is an experienced ASX Listed company secretary and is a graduate of the Governance Institute and
Australian Institute of Company Directors.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
14
Directors’ report
30 June 2024
MEETINGS OF DIRECTORS
The number of meetings of the Company’s Board of Directors (‘the Board’) held during the year ended
30 June 2024, and the number of meetings attended by each director were:
Full Board
Audit Committee
Risk and Compliance
Committee
Remuneration and
Nomination Committee
Attended
Held
Attended
Held
Attended
Held
Attended
Held
G Crole
5
5
3
3
3
3
3
3
C Sweeney
5
5
3
3
3
3
-
-
K Pattison
5
5
1
3
3
3
3
3
J Larsen *
4
5
2
3
-
-
3
3
* Resigned 16 May 2024
Held: represents the number of meetings held during the time the director held office or was a member of the relevant committee.
REMUNERATION REPORT (AUDITED)
The remuneration report details the key management personnel remuneration arrangements for the
Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations.
The remuneration report contains the following sections:
(a) Key management personnel covered in this report
(b) Executive reward framework
(c) Remuneration and nomination committee
(d) Non-executive directors arrangement
(e) Elements of remuneration
(f) Use of remuneration consultants
(g) Voting and comments made at the Company’s 2023 Annual General Meeting (AGM)
(h) Details of key management personnel remuneration
(i) Service agreements
(j) Share-based compensation
(k) Additional information
(l) Other disclosures relating to key management personnel
(a) Key management personnel covered in this report
The key management personnel are defined as those persons having authority and responsibility
for planning, directing and controlling the activities of the Group, directly or indirectly, including all
directors.
The key management personnel of the Group during the financial year are as follows:
• Garry Crole - Managing Director and Chief Executive Officer
• John Larsen - Chairman and Non-Executive Director (resigned 16 May 2024)
• Kevin Pattison - Non-Executive Director
• Charles Sweeney - Non-Executive Director
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
15
Directors’ report
30 June 2024
Other key management personnel:
• Lizzie Tan – Chief Financial Officer and Joint Company Secretary
(b) Executive reward framework
The objective of the Group’s executive reward framework is to ensure reward for performance is
competitive and appropriate for the results delivered. The framework aligns executive reward with the
achievement of strategic objectives and the creation of value for shareholders, and it is considered
to conform to the market best practice for the delivery of reward. The Board of Directors ensures that
executive reward satisfies the following key criteria for good reward governance practices:
• competitiveness and reasonableness;
• acceptability to shareholders;
• performance linkage / alignment of executive compensation; and
• transparency.
(c) Remuneration and Nomination Committee
The Board of Directors, through its Remuneration and Nomination Committee, accepts responsibility for
determining and reviewing remuneration arrangements for the directors and the senior management
team. The Remuneration and Nomination Committee assesses the appropriateness of the nature and
amount of remuneration of directors and senior managers on a periodic basis by reference to relevant
employment market conditions, giving due consideration to the overall profitability and financial
resources of the Group, with the objective of ensuring maximum stakeholder benefit from the retention
of a high quality Board and executive team.
In accordance with best practice corporate governance, the structure of non-executive director and
executive director remuneration is separate.
(d) Non-executive directors arrangement
Fees and payments to non-executive directors reflect the demands which are made of the directors
in fulfilling their responsibilities. Non-executive director fees are reviewed annually by the Board. The
constitution of the Company provides that the non-executive directors of the Company are entitled to
such remuneration, as determined by the Board, which must not exceed in aggregate the maximum
amount determined by the Company in general meeting. The most recent determination was at the
Annual General Meeting held on 23 November 2023 where the shareholders approved an aggregate
remuneration of $450,000.
(e) Elements of remuneration
Executive remuneration comprises:
• Fixed remuneration component;
• Variable remuneration component including short-term incentive (‘STI’)
• Variable remuneration including long-term incentive (‘LTI’); and
• A Sequoia Employee Incentive Plan is in place, which was approved at a meeting of shareholders in
a prior year.
Fixed remuneration
Fixed remuneration consists of base remuneration as well as employer contributions to superannuation.
Remuneration levels are reviewed annually through a process that considers individual performance
and that of the overall Group.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
16
Directors’ report
30 June 2024
Variable remuneration – short-term incentive (‘STI’)
STIs are available to executives who achieve performance criteria including compliance. The Board is
responsible for determining who is eligible to participate in STI arrangements as well as the structure of
those arrangements.
Variable remuneration – long-term incentive (‘LTI’)
The objective of the LTI plan is to reward senior managers in a manner which aligns this element of
remuneration with the creation of shareholder wealth. As such, LTI grants are only made to executives
who are able to influence the generation of shareholder wealth and thus have a direct impact on the
Group’s performance against relevant long term performance hurdles. LTI grants to executives are
delivered in the form of options or performance rights.
Sequoia Employee Incentive Plan (‘SEIP’)
The Company has in place an employee equity scheme, called the Sequoia Employee Incentive Plan
to offer options and performance rights to certain employees employed in the Company. During the
financial year, no new options or performance rights were issued.
Consolidated entity performance and link to remuneration
Remuneration for certain individuals is set with reference to prevailing market rates and the
performance of the Group. Short-term and long-term incentive payments are at the total discretion of
the Remuneration and Nomination Committee. Refer to the section ‘Additional information’ below for
details of the earnings and total shareholders return for the five years to 30 June 2024.
(f) Use of remuneration consultants
During the financial year ended 30 June 2024, the Group did not engage remuneration consultants, to
review its existing remuneration policies and provide recommendations.
(g) Voting and comments made at the Company’s 2023 Annual General Meeting (‘AGM’)
At the 23 November 2023 AGM, 99.39% of the votes received supported the adoption of the
remuneration report for the year ended 30 June 2023. The Company did not receive any specific
feedback at the AGM regarding its remuneration practices.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
17
Directors’ report
30 June 2024
(h) Details of key management personnel remuneration
Details of the remuneration of key management personnel of the Group are set out in the following tables.
Short-term benefits
Long-term
benefits
Post-
employment
benefits
Share-based
payments
2024
Cash salary
and fees
$
Cash
bonus
$
Directors’
fees
$
Movement
in leave
entitlements
$
Movement
in leave
entitlements
$
Super-
annuation
$
Options(2)
$
Total
$
Non-Executive
Directors:
J Larsen(3)
93,725
-
-
-
-
10,310
10,329
114,364
K Pattison
76,577
-
-
-
-
8,423
5,165
90,165
C Sweeney
-
-
82,680
-
-
-
5,165
87,845
Executive Directors:
G Crole(1)
534,572
45,000
-
1,654
31,123
27,399
10,329
650,077
Other Key
Management
Personnel:
L Tan
330,000
45,000
-
19,295
6,824
27,399
-
428,518
1,034,874
90,000
82,680
20,949
37,947
73,531
30,988
1,370,969
(1) Cash salary and fees include annual leave payout of $26,977
(2) Directors’ options vesting completion dates are 1 January 2022 and 1 January 2024. Other Key Management Personnel options have vested on 15 July
2021, 1 January 2022, 30 June 2022 and 1 January 2023.
(3) Payment as Chairman up to 18 April 2024, then as a director to 16 May 2024.
Short-term benefits
Long-term
benefits
Post-
employment
benefits
Share-based
payments
2023
Cash salary
and fees
$
Cash
bonus(2)
$
Directors’
fees
$
Movement
in leave
entitlements
$
Movement
in leave
entitlements
$
Super-
annuation
$
Options(3)
$
Total
$
Non-Executive
Directors:
J Larsen(4)
90,909
-
-
-
-
9,545
20,379
120,833
K Pattison
-
-
65,000
-
-
-
10,190
75,190
C Sweeney
-
-
65,000
-
-
-
10,190
75,190
Executive Directors:
G Crole(1)(2)
468,464
-
-
25,450
17,317
25,292
20,379
556,902
Other Key
Management
Personnel:
L Tan(2)
296,432
-
-
9,314
7,009
25,292
5,274
343,321
855,805
-
130,000
34,764
24,326
60,129
66,412
1,171,436
(1) Cash salary and fees include expense reimbursement of $869.
(2) No cash bonus paid/payable during the year.
(3) Directors’ options vesting completion dates are 1 January 2022 and 1 January 2024. Other Key Management Personnel options have vested on 15 July
2021, 1 January 2022, 30 June 2022 and 1 January 2023.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
18
Directors’ report
30 June 2024
The proportion of remuneration linked to performance and the fixed proportion are as follows:
Fixed remuneration
At risk - STI
At risk - LTI
Name
2024
2023
2024
2023
2024
2023
Non-Executive Directors:
J Larsen
91%
83%
-
-
9%
17%
K Pattison
94%
86%
-
-
6%
14%
C Sweeney
94%
86%
-
-
6%
14%
Executive Directors:
G Crole
98%
96%
-
-
2%
4%
Other Key Management Personnel:
L Tan
100%
98%
-
-
-
2%
(i) Service agreements
Where contracts have been established, employment terms and conditions of key management
personnel and Group executives are formalised in standard contracts of employment. All contracts,
except for the following, are for no fixed term with one to three months’ notice required for termination
by either party. There are no requirements for termination payments.
The Group renewed the service agreement for the Managing Director and Chief Executive Officer,
Garry Crole. The details of the agreement are as follows:
Name:
Garry Peter Crole
Title:
Managing Director and Chief Executive Officer
Term of agreement:
2 year term ending 30 June 2026
Details:
Fixed base annual salary of $507,595, plus superannuation. Incentive
based on KPI performance, capped at 30% of total remuneration, to
be paid in shares of Sequoia Financial Group Ltd.
(j) Share-based compensation
Issue of options
During prior years, options were granted to the directors and other key management personnel of the
Company as part of their compensation. The number of options over ordinary shares in the Company
held during the financial year by each director and the other member of the key management
personnel of the Group, including their personal related parties, is set out below:
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/
other
Balance at
the end of
the year
Options over ordinary shares
G Crole
500,000
-
(500,000)
-
-
J Larsen
500,000
-
-
(500,000)
-
K Pattison
250,000
-
-
(250,000)
-
C Sweeney
250,000
-
(250,000)
-
-
L Tan
250,000
-
-
(250,000)
-
1,750,000
-
(750,000)
(1,000,000)
-
As at 30 June 2024, all options were either exercised or expired.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
19
Directors’ report
30 June 2024
(k) Additional information
The earnings of the Group for the five years to 30 June 2024 are summarised below:
2024
$
2023
$
2022
$
2021
$
2020
$
Sales revenue
129,326,643
131,536,916
147,312,720
116,462,659
84,498,650
Operating profit
8,820,635
5,510,930
12,354,607
11,516,560
4,825,701
Profit/(loss) before income tax
34,412,453
(626,071)
8,633,168
8,127,791
2,881,237
Profit/(loss) after income tax
23,992,502
(2,630,431)
5,714,296
5,548,262
1,932,474
The factors that are considered to affect total shareholders return (‘TSR’) are summarised below:
2024
2023
2022
2021
2020
Share price at financial year end ($)
0.475
0.540
0.590
0.550
0.210
Total dividends declared (cents per share)
7.000
4.700
1.400
1.000
0.400
Basic earnings per share (cents per share)
18.121
(1.942)
4.296
4.324
1.607
(l) Other disclosures relating to key management personnel
Shareholding
The number of shares in the Company held during the financial year by each director and the other
member of the key management personnel of the Group, including their personally related parties, is set
out below:
Balance at
the start of
the year
Received
on exercise
of options
Additions
Disposals/
other
Balance at
the end of
the year
Ordinary shares
G Crole*
12,083,672
500,000
179,498
-
12,763,170
C Sweeney*
561,490
250,000
-
-
811,490
K Pattison*
794,869
-
20,833
-
815,702
J Larsen**
2,260,979
-
-
(2,260,979)
-
L Tan
303,861
-
-
-
303,861
16,004,871
750,000
200,331
(2,260,979)
14,694,223
* Shares acquired via on-market trade or exercise of options.
** J Larsen resigned from the Board on 16 May 2024, and, as at 30 June 2024, was not a Key Management Personnel of the Company.
Transactions with key management personnel and their related parties
During the financial year, $18,521 was paid or payable for services provided by Cooper Grace Ward,
a related party entity of director, Charles Sweeney. This is not deemed personal remuneration.
This concludes the remuneration report, which has been audited.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
20
Directors’ report
30 June 2024
SHARES UNDER OPTION
There were no unissued ordinary shares of Sequoia Financial Group Limited under option outstanding at
the date of this report.
SHARES UNDER PERFORMANCE RIGHTS
There were no unissued ordinary shares of Sequoia Financial Group Limited under performance rights
outstanding at the date of this report.
SHARES ISSUED ON THE EXERCISE OF OPTIONS
The following ordinary shares of Sequoia Financial Group Limited were issued during the year ended 30
June 2024 and up to the date of this report on the exercise of options granted:
Date options granted
Exercise price
Number of shares issued
19 November 2020 (Type 2)
$0.4500
100,000
18 January 2021 (Type 2)
$0.4500
750,000
850,000
SHARES ISSUED ON THE EXERCISE OF PERFORMANCE RIGHTS
The following ordinary shares of Sequoia Financial Group Limited were issued during the year ended 30
June 2024 and up to the date of this report on the exercise of performance rights granted:
Date performance rights granted
Share price as
at date of
exercise
Number of
shares issued
29 September 2023
$0.4850
100,000
INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the directors and executives of the Company for costs incurred, in their
capacity as a director or executive, for which they may be held personally liable, except where there is
a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the directors
and executives of the Company against a liability to the extent permitted by the Corporations Act
2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the
premium.
INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify
the auditor of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the
auditor of the Company or any related entity.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
21
Directors’ report
30 June 2024
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene in any proceedings to which the Company
is a party for the purpose of taking responsibility on behalf of the Company for all or part of those
proceedings.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the
financial year by the auditor are outlined in note 28 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the
auditor (or by another person or firm on the auditor’s behalf), is compatible with the general standard of
independence for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 28 to the financial statements do
not compromise the external auditor’s independence requirements of the Corporations Act 2001 for the
following reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the
integrity and objectivity of the auditor; and
• none of the services undermine the general principles relating to auditor independence as set out
in APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued
by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the
auditor’s own work, acting in a management or decision-making capacity for the Company, acting
as advocate for the Company or jointly sharing economic risks and rewards.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations
Act 2001 is set out immediately after this directors’ report.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
___________________________
Mike Ryan
Chairman
26 August 2024
Sydney
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
22
Directors’ report
30 June 2024
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Lead Auditor’s Independence Declaration under Section 307C of
the Corporations Act 2001
To the directors of Sequoia Financial Group Limited
As lead auditor for the audit of Sequoia Financial Group Limited for the year ended 30 June 2024, I declare
that, to the best of my knowledge and belief, there have been:
— no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in
relation to the audit; and
— no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Sequoia Financial Group Limited and the entities it controlled during the
year.
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
R. P. Burt
Director
Melbourne, 26 August 2024
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
23
Auditor’s independence declaration
Consolidated
Note
2024
$
2023
$
Revenue from continuing operations
5
124,550,747
98,498,810
Share of profits of associates accounted for using the equity method
14
154,503
-
Expenses
Data fees
(72,753)
(277,227)
Dealing and settlement
6
(4,250,821)
268,458
Compliance costs
(543,558)
(2,124,560)
Commission and hedging
(90,238,455)
(71,257,839)
Employee benefits
6
(14,315,092)
(14,399,304)
Occupancy
(744,079)
(470,244)
Telecommunications
(1,296,989)
(1,255,679)
Marketing
(494,560)
(396,627)
General and administrative
(2,861,308)
(2,966,899)
Insurance
(1,211,203)
(1,008,603)
Operating profit
8,676,432
4,610,286
Interest revenue calculated using the effective interest method
919,705
45,760
Depreciation
6
(1,330,133)
(1,381,076)
Amortisation
6
(2,447,595)
(2,212,703)
Finance costs
6
(175,917)
(230,146)
Abnormal events
(163,079)
-
Acquisition and divestment-related costs
(121,077)
(102,230)
Restructuring costs
(119,942)
-
Impairment of plant and equipment
(787,785)
-
Impairment of goodwill and intangible assets
15
(6,383,412)
(1,687,476)
Gain on sale of asset
135,000
-
Write-back to profit or loss for consideration not payable
334,257
-
Consideration for business acquired
-
(1,494,182)
Loss before income tax expense from continuing operations
(1,463,546)
(2,451,767)
Income tax expense
7
(1,678,969)
(1,496,265)
Loss after income tax expense from continuing operations
(3,142,515)
(3,948,032)
Profit after income tax expense from discontinued operations
8
27,135,017
1,317,601
Profit/(loss) after income tax expense for the year attributable to the owners of
Sequoia Financial Group Limited
23
23,992,502
(2,630,431)
Other comprehensive expense
Items that will not be reclassified subsequently to profit or loss
Loss on the revaluation of financial assets at fair value through other comprehensive
income, net of tax
(29)
(82)
Other comprehensive expense for the year, net of tax
(29)
(82)
Total comprehensive income/(expense) for the year attributable to the owners of
Sequoia Financial Group Limited
23,992,473
(2,630,513)
The above consolidated statement of profit or loss and other comprehensive income should be read
in conjunction with the accompanying notes
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
24
Consolidated statement of profit or loss and other comprehensive income
Total comprehensive income/(expense) for the year is attributable to:
Continuing operations
(3,142,544)
(3,948,114)
Discontinued operations
27,135,017
1,317,601
23,992,473
(2,630,513)
2024
Cents
2023
Cents
Earnings per share for loss from continuing operations attributable to the owners
of Sequoia Financial Group Limited
Basic earnings per share
36
(2.373)
(2.914)
Diluted earnings per share
36
(2.373)
(2.914)
Earnings per share for profit from discontinued operations attributable to the owners
of Sequoia Financial Group Limited
Basic earnings per share
36
20.494
0.973
Diluted earnings per share
36
20.494
0.973
Earnings per share for (loss)/profit attributable to the owners of Sequoia Financial
Group Limited
Basic earnings per share
36
18.121
(1.942)
Diluted earnings per share
36
18.121
(1.942)
The above consolidated statement of profit or loss and other comprehensive income should be read
in conjunction with the accompanying notes
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
25
Consolidated statement of profit or loss and other comprehensive income
Consolidated
Note
2024
$
2023
$
Assets
Current assets
Cash and cash equivalents
16,832,354
9,392,306
Trade and other receivables
9
8,914,681
9,311,594
Contract assets and deferred costs
10
2,472,610
3,509,343
Investments in shares
11
5,138,684
1,494,565
Derivative financial instruments
12
1,431,703
2,461,708
Other financial assets
13
-
17,891,572
Prepayments
918,601
1,074,813
35,708,633
45,135,901
Assets of disposal groups classified as held for sale
8
2,444,933
42,860,810
Total current assets
38,153,566
87,996,711
Non-current assets
Contract assets and deferred costs
10
928,158
1,018,846
Derivative financial instruments
12
1,241,828
1,694,766
Investments accounted for using the equity method
14
10,654,503
500,000
Plant and equipment
234,968
1,133,944
Right-of-use assets
363,745
1,348,225
Goodwill and intangible assets
15
25,037,804
31,981,070
Deferred tax
7
2,714,801
9,975,843
Other non-current assets
59,701
86,578
Total non-current assets
41,235,508
47,739,272
Total assets
79,389,074
135,735,983
The above consolidated statement of financial position should be read in conjunction
with the accompanying notes
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
26
Consolidated statement of financial position
The above consolidated statement of financial position should be read in conjunction
with the accompanying notes
Consolidated
Note
2024
$
2023
$
Liabilities
Current liabilities
Trade and other payables
16
6,810,453
10,057,215
Contract liabilities and deferred revenue
17
3,336,304
4,504,747
Interest bearing loans and borrowings
18
-
495,593
Lease liabilities
383,432
990,340
Derivative financial instruments
12
1,431,703
2,461,708
Income tax payable
414,664
6,487,348
Employee benefits
1,089,819
1,368,396
Contingent consideration
20
2,124,728
2,205,244
Consideration in advance
19
-
25,041,572
15,591,103
53,612,163
Liabilities directly associated with assets classified as held for sale
8
2,396,012
30,533,788
Total current liabilities
17,987,115
84,145,951
Non-current liabilities
Contract liabilities and deferred revenue
17
1,157,669
1,305,390
Interest bearing loans and borrowings
18
-
1,750,000
Lease liabilities
321,209
947,901
Derivative financial instruments
12
1,241,828
1,694,766
Deferred tax
7
1,443,172
2,711,095
Employee benefits
112,976
138,684
Contingent consideration
20
450,000
-
Total non-current liabilities
4,726,854
8,547,836
Total liabilities
22,713,969
92,693,787
Net assets
56,675,105
43,042,196
Equity
Issued capital
21
51,593,730
53,867,905
Reserves
22
548,118
810,032
Retained profits/(accumulated losses)
23
4,533,257
(11,635,741)
Total equity
56,675,105
43,042,196
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
27
Consolidated statement of financial position
Consolidated
Issued
capital
$
Financial assets
at fair value
reserve
$
Share-based
payments
reserve
$
Accumulated
losses
$
Total equity
$
Balance at 1 July 2022
54,491,225
548,229
169,245
(6,833,409)
48,375,290
Loss after income tax expense for the year
-
-
-
(2,630,431)
(2,630,431)
Other comprehensive expense for the year,
net of tax
-
(82)
-
-
(82)
Total comprehensive expense for the year
-
(82)
-
(2,630,431)
(2,630,513)
Transactions with owners in their capacity as
owners:
Payments for share buy-backs (note 21)
(623,320)
-
-
-
(623,320)
Vesting of share-based payments
-
-
92,640
-
92,640
Dividends paid
-
-
-
(2,171,901)
(2,171,901)
Balance at 30 June 2023
53,867,905
548,147
261,885
(11,635,741)
43,042,196
Consolidated
Issued
capital
$
Financial assets
at fair value
reserve
$
Share-based
payments
reserve
$
Retained
profits
$
Total equity
$
Balance at 1 July 2023
53,867,905
548,147
261,885
(11,635,741)
43,042,196
Profit after income tax expense for the year
-
-
-
23,992,502
23,992,502
Other comprehensive expense for the year,
net of tax
-
(29)
-
-
(29)
Total comprehensive (expense)/income for the
year
-
(29)
-
23,992,502
23,992,473
Transactions with owners in their capacity as
owners:
Share-based payments
48,500
-
10,032
-
58,532
Payments for share buy-backs (note 21)
(2,816,743)
-
-
-
(2,816,743)
Exercise of options
494,068
-
(111,568)
-
382,500
Transfer of fair value on lapsed options
-
-
(160,349)
160,349
-
Dividends paid (note 24)
-
-
-
(7,983,853)
(7,983,853)
Balance at 30 June 2024
51,593,730
548,118
-
4,533,257
56,675,105
The above consolidated statement of changes in equity should be read in conjunction
with the accompanying notes
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
28
Consolidated statement of changes in equity
Consolidated
Note
2024
$
2023
$
Cash flows from operating activities
Receipts from customers (inclusive of GST)
138,574,105
115,299,106
Payments to suppliers and employees (inclusive of GST)
(133,738,139)
(112,426,961)
Net cash used in client related operations
(834,930)
(7,015,692)
4,001,036
(4,143,547)
Interest received
1,150,837
985,859
Interest and other finance costs paid
(117,818)
(142,344)
Income taxes paid
(9,856,345)
(2,292,867)
Net cash used in operating activities
35
(4,822,290)
(5,592,899)
Cash flows from investing activities
Payment for purchase of businesses, net of cash acquired
(401,197)
-
Further payments for prior period purchase of business
-
(2,244,182)
Payments for investments in shares
(3,516,370)
(1,135,033)
Payments for plant and equipment
(469,861)
(423,983)
Payments for intangibles
15
-
(4,900)
Payments for asset acquisitions
(4,347,009)
(112,126)
Transfer of cash at bank on disposal of business
(20,851,590)
-
Proceeds from disposal of business
34,081,401
7,150,000
Proceeds from disposal of investments in shares
660,218
108,529
Proceeds from disposal of property, plant and equipment
3,026
-
Proceeds of distributions from joint venture
-
7,500
Net cash from investing activities
5,158,618
3,345,805
Cash flows from financing activities
Proceeds from exercise of options and performance rights
402,786
-
Payments for share buybacks
(2,816,743)
(623,320)
(Repayment)/proceeds from drawdown of loan facility
(1,750,000)
1,750,000
Proceeds from borrowings
-
991,685
Repayment of borrowings
(495,593)
(986,869)
Repayment of lease liabilities
(1,048,439)
(1,038,370)
Dividends paid
24
(7,983,853)
(2,171,901)
Net cash used in financing activities
(13,691,842)
(2,078,775)
Net decrease in cash and cash equivalents
(13,355,514)
(4,325,869)
Cash and cash equivalents at the beginning of the financial year
9,392,306
36,607,635
Less: cash and cash equivalents classified as held for sale
(2,093,898)
(22,889,460)
Cash and cash equivalents classified as held-for-sale at the beginning of
the financial year
22,889,460
-
Cash and cash equivalents at the end of the financial year
16,832,354
9,392,306
The above consolidated statement of cash flows should be read in conjunction
with the accompanying notes
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
29
Consolidated statement of cash flows
NOTE 1. GENERAL INFORMATION
The financial statements cover Sequoia Financial Group Limited as a Group consisting of Sequoia
Financial Group Limited (‘Company’ or ‘parent entity’) and the entities it controlled at the end of, or
during, the year (referred to in these financial statements as the ‘Group’). The financial statements are
presented in Australian dollars, which is Sequoia Financial Group Limited’s functional and presentation
currency.
Sequoia Financial Group Limited is a listed public company limited by shares, incorporated and
domiciled in Australia. Its registered office and principal place of business are:
Registered office
Principal place of business
Suite 7.01, Level 7
1 Castlereagh Street
Sydney NSW 2000
Level 8
525 Flinders Street
Melbourne VIC 3000
A description of the nature of the Group’s operations and its principal activities are included in the
directors’ report, which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on
26 August 2024. The directors have the power to amend and reissue the financial statements.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATION
The accounting policies that are material to the Group are set out below. The accounting policies
adopted are consistent with those of the previous financial year, unless otherwise stated.
New or amended Accounting Standards and Interpretations adopted
The Group has adopted all of the new or amended Accounting Standards and Interpretations issued
by the Australian Accounting Standards Board (‘AASB’) that are mandatory for the current reporting
period. The adoption of these Accounting Standards and Interpretations did not have any significant
impact on the financial performance or position of the Group.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not
been early adopted.
The following Accounting Standards and Interpretations are most relevant to the Group:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
Amendments of AASB 7, 101 and 108 provide definition and clarifications on accounting estimates and
clarify the concept of materiality in the context of disclosure of accounting policies. The amendments
were applied from 1 July 2023. The amendments did not have a material impact on the Group.
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to Assets and
Liabilities arising from a Single Transaction
This amendment revises AASB 112 to narrow the scope of the initial recognition exemption so that it does
not apply to transactions that give rise to equal and offsetting temporary differences and clarify that the
exemption does not apply to transactions such as leases and decommissioning obligations.
The amendments were applied from 1 July 2023. The amendments did not have a material impact on
the Group.
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
30
Basis of preparation
These general purpose financial statements have been prepared in accordance with Australian
Accounting Standards and Interpretations issued by the AASB and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International
Financial Reporting Standards as issued by the International Accounting Standards Board (‘IASB’).
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where
applicable, the revaluation of financial assets at fair value through other comprehensive income,
financial assets and liabilities at fair value through profit or loss and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Group’s accounting
policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the financial statements, are disclosed in note 3.
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the
Group only. Supplementary information about the parent entity is disclosed in note 31.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Sequoia
Financial Group Limited as at 30 June 2024 and the results of all subsidiaries for the year then ended.
Subsidiaries are all those entities over which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the Group. They are de-consolidated from
the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between entities in the
Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of
the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the Group.
The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change
in ownership interest, without the loss of control, is accounted for as an equity transaction, where the
difference between the consideration transferred and the book value of the share of the non-controlling
interest acquired is recognised directly in equity attributable to the parent.
Where the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities
and non-controlling interest in the subsidiary together with any cumulative translation differences
recognised in equity. The Group recognises the fair value of the consideration received and the fair
value of any investment retained together with any gain or loss in profit or loss.
Operating segments
Operating segments are presented using the ‘management approach’, where the information
presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers
(‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing
their performance.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
31
Revenue recognition
Material accounting policies relating to revenue are as follows:
Revenue from contracts with customers
Revenue is recognised at an amount that reflects the consideration to which the Group is expected
to be entitled in exchange for transferring goods or services to a customer. For each contract
with a customer, the Group: identifies the contract with a customer; identifies the performance
obligations in the contract; determines the transaction price which takes into account estimates of
variable consideration and the time value of money; allocates the transaction price to the separate
performance obligations on the basis of the relative stand-alone selling price of each distinct good or
service to be delivered; and recognises revenue when or as each performance obligation is satisfied in
a manner that depicts the transfer to the customer of the goods or services promised.
Timing of revenue recognition
A business in this Group offers structured products to investors seeking exposure to investment
opportunities. Management determined after lengthy evaluation that there are different types of
structured product revenue. Each revenue type has numerous and distinct performance obligations,
which allows for a different treatment to each of these revenue streams.
The different revenue streams include:
• application fee revenue is recognised up-front (upon execution of delivery of product to the
customer) and is non-refundable;
• structured product revenue is released over the duration of the contract as it is earned over a period
of time (duration of the contract); and
• coupon premium revenue is earned upon completion of the contract, as it is earned upon concluding
the contract (conclusion of contract).
The costs of entering into the contract with wholesale counter parties are matched to the revenue streams.
Other revenue from client services
Revenues from other services, including brokerage, superannuation and general advisory services are
performed as they are rendered to the customer, net of any commissions. For brokerage, this occurs
upon the date of settlement of clearing the underlying transaction on behalf of the client.
Contract assets and contract liabilities
Contract assets relate to contract costs and contract liabilities relate primarily to structured product
revenues. The contract assets represent costs deferred and contract liabilities represent revenue
deferred due to recognition requirements where the revenue and cost are spread over the product life.
Discontinued operations
A discontinued operation is a component of the Group that has been disposed of or is classified as held
for sale and that represents a separate major line of business or geographical area of operations, is part
of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary
acquired exclusively with a view to resale. The asset or disposable group is available for immediate sale
in its present condition, subject only to terms that are usual and customary for sales of such assets (or
disposal groups) and its sale is highly probable. A sale is highly probable where the agreement has been
signed and executed and completion is expected within the next year.
The results of discontinued operations are presented separately on the face of the statement of profit
or loss and other comprehensive income. The disposal assets are held for sale at the lower of its carrying
amount and fair value less costs to sell.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
32
Derivative financial instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and
are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent
changes in fair value depends on whether the derivative is designated as a hedging instrument, and if
so, the nature of the item being hedged.
Derivatives are classified as current or non-current depending on the expected period of realisation,
based upon the maturity date set in the underlying derivative agreement.
Non-current assets or disposal groups classified as held for sale
Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount
will be recovered principally through a sale transaction rather than through continued use. They are
measured at the lower of their carrying amount and fair value less costs of disposal. For non-current
assets or assets of disposal groups to be classified as held for sale, they must be available for immediate
sale in their present condition and their sale must be highly probable.
An impairment loss is recognised for any initial or subsequent write down of the non-current assets and
assets of disposal groups to fair value less costs of disposal. A gain is recognised for any subsequent
increases in fair value less costs of disposal of a non-current assets and assets of disposal groups, but not
in excess of any cumulative impairment loss previously recognised.
Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest
and other expenses attributable to the liabilities of assets held for sale continue to be recognised.
Non-current assets classified as held for sale and the assets of disposal groups classified as held for
sale are presented separately on the face of the statement of financial position, in current assets.
The liabilities of disposal groups classified as held for sale are presented separately on the face of the
statement of financial position, in current liabilities.
Associates
Associates are entities over which the Group has significant influence but not control or joint control.
Investments in associates are accounted for using the equity method. Under the equity method,
the share of the profits or losses of the associate is recognised in profit or loss and the share of the
movements in equity is recognised in other comprehensive income. Investments in associates are
carried in the statement of financial position at cost plus post-acquisition changes in the Group’s share
of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of
the investment and is neither amortised nor individually tested for impairment. Dividends received or
receivable from associates reduce the carrying amount of the investment.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including
any unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
The Group discontinues the use of the equity method upon the loss of significant influence over the
associate and recognises any retained investment at its fair value. Any difference between the
associate’s carrying amount, fair value of the retained investment and proceeds from disposal is
recognised in profit or loss.
Impairment of financial assets
The Group recognises a loss allowance for expected credit losses on financial assets which are either
measured at amortised cost or fair value through other comprehensive income. The measurement of
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
33
the loss allowance depends upon the Group’s assessment at the end of each reporting period as to
whether the financial instrument’s credit risk has increased significantly since initial recognition, based on
reasonable and supportable information that is available, without undue cost or effort to obtain.
Where there has not been a significant increase in exposure to credit risk since initial recognition, a
12-month expected credit loss allowance is estimated. This represents a portion of the asset’s lifetime
expected credit losses that is attributable to a default event that is possible within the next 12 months.
Where a financial asset has become credit impaired or where it is determined that credit risk has
increased significantly, the loss allowance is based on the asset’s lifetime expected credit losses. The
amount of expected credit loss recognised is measured on the basis of the probability weighted present
value of anticipated cash shortfalls over the life of the instrument discounted at the original effective
interest rate.
For financial assets mandatorily measured at fair value through other comprehensive income, the loss
allowance is recognised in other comprehensive income with a corresponding expense through profit
or loss. In all other cases, the loss allowance reduces the asset’s carrying value with a corresponding
expense through profit or loss.
Goodwill and intangible assets
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured
at their fair value at the date of the acquisition. Intangible assets acquired separately are initially
recognised at cost. Finite life intangible assets are subsequently measured at cost less amortisation
and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of
intangible assets are measured as the difference between net disposal proceeds and the carrying
amount of the intangible asset. The method and useful lives of finite life intangible assets are
reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for
prospectively by changing the amortisation method or period.
Goodwill
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested
annually for impairment, or more frequently if events or changes in circumstances indicate that it might
be impaired, and is carried at cost less accumulated impairment losses. Impairment losses on goodwill
are taken to profit or loss and are not subsequently reversed.
Customer list
Customer lists are amortised on a straight-line basis over their finite life. The finite life is the period of
expected benefit, which ranges from 5 to 20 years depending on factors such as, their significance to
the Group, acquisition consideration and estimated customer turnover.
Impairment of non-financial assets
Goodwill and intangible assets of indefinite life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might
be impaired. Other non-financial assets are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The
value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax
discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not
have independent cash flows are grouped together to form a cash-generating unit.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
34
Fair value measurement
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measurement date; and assumes
that the transaction will take place either: in the principal market; or in the absence of a principal
market, in the most advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the
asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair
value measurement is based on its highest and best use. Valuation techniques that are appropriate
in the circumstances and for which sufficient data are available to measure fair value, are used,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy
that reflects the significance of the inputs used in making the measurements. Classifications are
reviewed at each reporting date and transfers between levels are determined based on a reassessment
of the lowest level of input that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are
selected based on market knowledge and reputation. Where there is a significant change in fair value
of an asset or liability from one period to another, an analysis is undertaken, which includes a verification
of the major inputs applied in the latest valuation and a comparison, where applicable, with external
sources of data.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Sequoia
Financial Group Limited, excluding any costs of servicing equity other than ordinary shares, by the
weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus
elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with
dilutive potential ordinary shares and the weighted average number of shares assumed to have been
issued for no consideration in relation to dilutive potential ordinary shares.
New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but
are not yet mandatory, have not been early adopted by the Group for the annual reporting period
ended 30 June 2024. The Group’s assessment of the impact of these new or amended Accounting
Standards and Interpretations, most relevant to the Group, are set out below.
AASB 2020-1 Amendments to Australian Accounting Standards - Classification of Liabilities as Current
or Non-current
The amendments are applicable for financial periods beginning on or after 1 January 2024. The
standard makes amendments to paragraphs 69 to 76 of AASB 101 to specify the requirements for
classifying liabilities as current or non-current. The amendments clarify:
• What is meant by a right to defer settlement;
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
35
• That a right to defer must exist at the end of the reporting period;
• That classification is unaffected by the likelihood that an entity will exercise its deferral right; and
• That only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms of a liability not impact its classification.
The Group will adopt this standard from 1 July 2024 and the amendments are not expected to have
a material impact on the Group.
AASB 18 Presentation and Disclosure in Financial Statements
This standard is applicable to annual reporting periods beginning on or after 1 January 2027, with early
adoption permitted. The standard replaces AASB 101 ‘Presentation of Financial Statements’, although
many of the requirements have been carried forward unchanged and is accompanied by limited
amendments to the requirements in AASB 107 ‘Statement of Cash Flows’. The standard will affect
presentation and disclosure in the financial statements, including introducing five categories in the
statement of profit or loss and other comprehensive income: operating, investing, financing, income
taxes and discontinued operations. The standard introduces two mandatory sub-totals in the statement:
‘Operating profit’ and ‘Profit before financing and income taxes’. There are also new disclosure
requirements for ‘management-defined performance measures’, such as earnings before interest,
taxes, depreciation and amortisation (‘EBITDA’) or ‘adjusted profit’. The standard provides enhanced
guidance on grouping of information (aggregation and disaggregation), including whether to present
this information in the primary financial statements or in the notes. The Group will adopt this standard
from 1 July 2027 and it is expected that there will be a significant change to the layout of the statement
of profit or loss and other comprehensive income.
NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts in the financial statements. Management continually
evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements, estimates and assumptions on historical experience
and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom
equal the related actual results. The judgements, estimates and assumptions that have a significant risk
of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective
notes) within the next financial year are discussed below.
Assessment of achieving revenue targets attached to contingent consideration
Contingent consideration is deemed a critical estimate as there may be estimated amounts included
in the transaction price of acquired businesses. These estimates are largely based on an assessment
of anticipated performance and all information (historical, current and forecasted) that is reasonably
available.
Goodwill
The Group tests annually, or more frequently if events or changes in circumstances indicate impairment,
whether goodwill has suffered any impairment, in accordance with the accounting policy stated in
note 2. The recoverable amounts of cash-generating units have been determined based on value-in-
use calculations. These calculations require the use of assumptions, including estimated discount rates
based on the current cost of capital and growth rates of the estimated future cash flows.
NOTE 2. MATERIAL ACCOUNTING POLICY INFORMATIONS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
36
Investments in associates and joint ventures and significant influence
Having significant influence over an associate or joint venture means that the investment in that
associate or joint venture is accounted for using the equity method. Management had assessed the
associates and joint ventures where the group holds between 20% to 50% of shares and determined that
significant influence was maintained. This was due to having board representation, participating in the
policy-making process and provision of essential technical support.
Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The Group assesses impairment of non-financial assets other than goodwill and other indefinite life
intangible assets at each reporting date by evaluating conditions specific to the Group and to the
particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of
the asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which
incorporate a number of key estimates and assumptions.
Discontinued operations - Morrison Securities Pty Ltd
The discontinued operation contained two main accounting judgements: the date of loss of control and
accounting for the sale as a single transaction.
It was assessed that the Group retains control of Morrison Securities Pty Ltd until the completion of the
second tranche of the transaction because until that point in time, the Group has power over Morrison
Securities Pty Ltd through the majority of director votes in maintaining policy and operational decision
making.
It was also evaluated that these two tranche transactions be accounted for as a single transaction, due
to the intended overall commercial effect.
Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is
probable that future taxable amounts will be available to utilise those temporary differences and losses.
Derivatives and investments
The fair value of derivatives and investments is determined by marking-to-market. Refer to note 2, Fair
value measurement section, and note 26 Fair value measurement.
NOTE 4. OPERATING SEGMENTS
Identification of reportable operating segments
The Group is organised into five operating segments, which are based on the internal reports that are
reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers
(‘CODM’)) in assessing performance and in determining the allocation of resources.
On a monthly basis the CODM reviews operating profit, which is earnings before interest, taxation,
depreciation and amortisation, and non-operational items (such as, acquisition-related costs,
redundancy costs and impairment charges).
NOTE 3. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
(CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
37
Types of products and services
The principal products and services of each of the Group’s operating segments are as follows:
Sequoia Licensees
Services Group
The Licensees Services Group is the core driver of the company business
thematic.
The Licensees Services Group is the area of the business where we provide
licensee services to Financial Planners, Wealth Managers, Equity advisers and a
Corporate advisory business unit.
The Licensees Services Group specialises in providing the adviser market a full
service licensing and support service so they can operate as an adviser in a
market that is heavily legislated. Our role is to charge a fee for service and assist
with a range of value propositions including compliance, marketing, coaching,
education, research, and technical support.
The advisers are primarily accountants, financial planners, mortgage brokers,
insurance advisers, equity market advisers and investment professionals with their
AFS licensing, merger and acquisitions corporate advice.
Sequoia Professional
Services Group
The Professional Services Group provides services to intermediaries including
licensed advisers, accountants and lawyers. This service provision includes SMSF
administration, general insurance broking, legal document establishment services
and company secretarial services. The division has relationships with over 3,000
accountants and financial planners across Australia, who have used at least one
service from the division.
Sequoia Equity
Markets Group
The Equity Markets Group provides services to licensed advisers, self-directed
investors and superannuation funds. Specialised Investment delivers solutions to
third party institutional and adviser networks that operate their own AFSL.
Sequoia Direct
Investment Group
The Direct Investment Group provides a range of media services, research and
general advice to self-directed investors. In addition, the division looks to support
AFSL holders with tools to reduce the cost of advice by providing news, research
and data on managed funds, direct shares and bonds.
Head Office
Head Office relates to the corporate running costs of the Group.
All products and services are provided predominantly to customers in Australia.
Intersegment transactions
Intersegment transactions were made at cost. Intersegment transactions are eliminated on
consolidation.
Intersegment receivables, payables and loans
Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable
and loans payable that earn or incur non-market interest are not adjusted to fair value based on market
interest rates. Intersegment loans are eliminated on consolidation.
NOTE 4. OPERATING SEGMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
38
Operating segment information
Consolidated - 2024
Sequoia
Licensees
Services
Group
$
Sequoia
Professional
Services
Group
$
Sequoia
Equity
Markets
Group
$
Sequoia
Direct
Investment
Group
$
Head
Office
$
Total
$
Continuing operations
Revenue
Revenue
102,203,861
9,952,580
9,095,430
2,347,771
327,169
123,926,811
Gains/(losses) on portfolio investments
588,926
-
(527)
-
35,537
623,936
Total revenue
102,792,787
9,952,580
9,094,903
2,347,771
362,706
124,550,747
Operating profit
8,164,674
4,237,441
563,057
(65,724)
(4,223,016)
8,676,432
Interest revenue
919,705
Depreciation
(1,330,133)
Amortisation
(2,447,595)
Finance costs
(175,917)
Abnormal events
(163,079)
Acquisition and divestment-related
costs
(121,077)
Restructuring costs
(119,942)
Impairment of plant and equipment
(787,785)
Impairment of goodwill and intangible
assets
(6,383,412)
Gain on sale of asset
135,000
Write-back to profit or loss for
consideration not payable
334,257
Loss before income tax expense
(1,463,546)
Income tax expense
(1,678,969)
Loss after income tax expense
(3,142,515)
NOTE 4. OPERATING SEGMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
39
Consolidated - 2023
Sequoia
Licensees
Services
Group
$
Sequoia
Professional
Services
Group
$
Sequoia
Equity
Markets
Group
$
Sequoia
Direct
Investment
Group
$
Head
Office
$
Total
$
Continuing operations
Revenue
Revenue
72,882,313
8,484,162
14,383,094
2,970,254
472,345
99,192,168
Gains/(losses) on portfolio
investments
(684,977)
(8,746)
365
-
-
(693,358)
Total revenue
72,197,336
8,475,416
14,383,459
2,970,254
472,345
98,498,810
Operating profit
3,751,016
2,383,510
1,513,010
(203,300)
(2,833,950)
4,610,286
Interest revenue
45,760
Depreciation
(1,381,076)
Amortisation
(2,212,703)
Acquisition costs
(102,230)
Finance costs
(230,146)
Impairment of intangible assets
(1,687,476)
Consideration for business acquired
(1,494,182)
Loss before income tax expense
(2,451,767)
Income tax expense
(1,496,265)
Loss after income tax expense
(3,948,032)
Revenue by geographical area
All revenue is generated within Australia
NOTE 5. REVENUE
Consolidated
2024
$
2023
$
From continuing operations
Sales revenue
Data subscriptions fees
138,703
355,515
Brokerage and commissions revenue
100,160,298
71,124,624
Superannuation product revenue
2,462,488
2,713,971
Structured product revenue
9,095,305
14,384,198
Corporate advisory fees
9,533,895
7,421,452
Media revenue
963,223
1,588,741
Other income
1,572,899
1,603,667
123,926,811
99,192,168
Other revenue
Gains/(losses) on portfolio investments
623,936
(693,358)
Revenue from continuing operations
124,550,747
98,498,810
NOTE 4. OPERATING SEGMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
40
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Consolidated - 2024
Sequoia
Licensees
Services
Group
$
Sequoia
Professional
Services
Group
$
Sequoia
Equity
Markets
Group
$
Sequoia
Direct
Investment
Group
$
Head
Office
$
Total
$
Timing of revenue recognition
Services transferred at a point in time
102,203,861
9,952,580
125
1,312,739
327,169
113,796,474
Services transferred over time
-
-
9,095,305
1,035,032
-
10,130,337
102,203,861
9,952,580
9,095,430
2,347,771
327,169
123,926,811
Consolidated - 2023
Sequoia
Licensees
Services
Group
$
Sequoia
Professional
Services
Group
$
Sequoia
Equity
Markets
Group
$
Sequoia
Direct
Investment
Group
$
Head
Office
$
Total
$
Timing of revenue recognition
Services transferred at a point in time
72,882,312
8,484,162
123
1,052,248
472,346
82,891,191
Services transferred over time
-
-
14,382,971
1,918,006
-
16,300,977
72,882,312
8,484,162
14,383,094
2,970,254
472,346
99,192,168
NOTE 5. REVENUE (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
41
NOTE 6. EXPENSES
Consolidated
2024
$
2023
$
Loss before income tax from continuing operations includes the following
specific expenses:
Depreciation
Leasehold improvements
99,706
99,706
Plant and equipment
463,109
486,524
Land and buildings - right-of-use
716,525
758,223
Equipment - right-of-use
50,793
36,623
Total depreciation
1,330,133
1,381,076
Amortisation
Customer list
2,440,493
2,005,483
Regulatory memberships and licences
4,418
4,418
Other intangibles
2,684
202,802
Total amortisation
2,447,595
2,212,703
Total depreciation and amortisation
3,777,728
3,593,779
Dealing and settlement
Dealing and settlement
5,407,584
4,649,558
Elimination of intercompany transactions
(439,178)
(1,780,881)
Elimination of intercompany transactions from discontinued operations
(717,585)
(3,137,135)
Total dealing and settlement expense
4,250,821
(268,458)
Finance costs
Interest and finance charges paid/payable on borrowings
117,818
142,344
Interest and finance charges paid/payable on lease liabilities
58,099
87,802
Total finance costs
175,917
230,146
Employee benefits
Wages and salaries
10,404,128
10,152,315
Share-based payments
30,987
68,521
Commissions and discretionary bonus
600,246
902,063
Defined contribution superannuation expense
1,144,763
1,106,631
Other employment costs
2,134,968
2,169,774
Total employee benefits expense
14,315,092
14,399,304
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
42
NOTE 7. INCOME TAX
Consolidated
2024
$
2023
$
Income tax expense
Current tax
2,268,998
7,762,627
Deferred tax - origination and reversal of temporary differences
5,993,120
(6,167,443)
Adjustment recognised for prior periods
(25,798)
351,704
Tax adjustments related to discontinued operations
2,183,631
57,472
Aggregate income tax expense
10,419,951
2,004,360
Income tax expense is attributable to:
Loss from continuing operations
1,678,969
1,496,265
Profit from discontinued operations
8,740,982
508,095
Aggregate income tax expense
10,419,951
2,004,360
Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense from continuing operations
(1,463,546)
(2,451,767)
Profit before income tax expense from discontinued operations
35,875,999
1,825,696
34,412,453
(626,071)
Tax at the statutory tax rate of 30%
10,323,736
(187,821)
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Amortisation of intangibles
736,218
432,921
Tax impact on fair value revaluation
(403,096)
1,297,648
Revaluation of retained investment in Morrison Securities
154,102
-
Non-assessable earnings from investment in associate
(169,757)
-
Sundry items
(195,454)
109,908
10,445,749
1,652,656
Adjustment recognised for prior periods
(25,798)
351,704
Income tax expense
10,419,951
2,004,360
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
43
Consolidated
2024
$
2023
$
Deferred tax asset
Deferred tax asset comprises temporary differences attributable to:
Allowance for expected credit losses
-
9,135
Employee benefits
506,658
601,486
Accrued expenses
247,918
409,788
Deferred income
1,348,192
1,743,041
Capital gain on sale of investment
-
6,557,359
Net fair value loss on investment
399,401
205,561
Lease liability
211,392
595,131
Deferred tax asset held for sale
-
(145,658)
Sundry
1,240
-
Deferred tax asset
2,714,801
9,975,843
Movements:
Opening balance
9,975,843
6,000,655
Charged to profit or loss
(640,664)
(2,201,602)
Capital gain on sale of investments
(6,557,359)
6,557,359
Other reclass
(63,019)
(234,911)
Deferred tax asset held for sale
-
(145,658)
Closing balance
2,714,801
9,975,843
NOTE 7. INCOME TAX (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
44
Consolidated
2024
$
2023
$
Deferred tax liability
Deferred tax liability comprises temporary differences attributable to:
Financial assets at fair value through other comprehensive income
106,554
14,827
Deferred expenses
1,020,230
1,358,456
Intangibles
206,502
893,816
Lease asset
109,886
443,996
Deferred tax liability
1,443,172
2,711,095
Movements:
Opening balance
2,711,095
4,757,692
Credited to profit or loss
(590,229)
(1,696,742)
Recognition of deferred tax liability on lease asset
(203,268)
-
Disposal of assets
-
(114,944)
Other reclass
(474,426)
(234,911)
Closing balance
1,443,172
2,711,095
NOTE 7. INCOME TAX (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
45
NOTE 8. DISCONTINUED OPERATIONS AND HELD FOR SALE
Morrison Securities Pty Ltd
On 31 August 2023, the 80% divestment of Morrison Securities Pty Ltd was completed with receipt of the
final tranche of consideration payable.
Financial performance information
Consolidated
2024
$
2023
$
Brokerage and commissions revenue
4,688,490
32,426,032
Other income
87,406
612,074
Total revenue
4,775,896
33,038,106
Interest revenue calculated using the effective interest method
231,132
940,100
Data fees
(295,925)
(2,051,686)
Dealing and settlement
(3,445,759)
(19,639,467)
Commission and hedging
-
(4,994,854)
Employee benefits
(434,003)
(2,901,614)
Telecommunications
(146,102)
(1,035,283)
Marketing
(472)
(21,253)
General and administrative
(309,432)
(1,493,305)
Depreciation
(2,888)
(15,048)
Total expenses
(4,634,581)
(32,152,510)
Profit before income tax expense
372,447
1,825,696
Income tax expense
(264,156)
(508,095)
Profit after income tax expense
108,291
1,317,601
Gain on disposal before income tax
28,622,959
-
Fair value revaluation of retained investment in Morrison Securities Pty Ltd
6,880,593
-
Income tax expense
(8,476,826)
-
Gain on disposal after income tax expense
27,026,726
-
Profit after income tax expense from discontinued operations
27,135,017
1,317,601
Cash flow information
Consolidated
2024
$
2023
$
Net cash used in operating activities
(2,030,612)
(3,443,613)
Net cash used in investing activities
(20,851,590)
(12,789)
Net cash used in financing activities
(7,258)
(3,547,960)
Net decrease in cash and cash equivalents from discontinued operations
(22,889,460)
(7,004,362)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
46
Assets and liabilities on disposal of Morrison Securities Pty Ltd
Consolidated
2024
$
Cash and cash equivalents
20,851,590
Trade and other receivables
27,653,042
Prepayments
105,819
Plant and equipment
22,502
Deposits
20,000
Intangibles
3,564,107
Deferred tax asset
145,658
Advances to related parties
104,668
Total assets
52,467,386
Trade and other payables
31,429,315
Accrued expenses
2,016,015
Provision for income tax
643,240
Client trading and security bond
2,348,615
Employee benefits
382,684
Total liabilities
36,819,869
Net assets
15,647,517
Details of the disposal of Morrison Securities Pty Ltd
Consolidated
2024
$
Total sale consideration
40,500,000
Fair value of investment retained
10,000,000
Excess working capital
1,151,069
Carrying amount of net assets disposed
(15,647,517)
Retention cost relating to sale
(500,000)
Gain on disposal before income tax
35,503,552
Income tax expense
(8,476,826)
Gain on disposal after income tax
27,026,726
NOTE 8. DISCONTINUED OPERATIONS AND HELD FOR SALE (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
47
Assets and liabilities of disposal groups classified as held for sale
On 1 July 2024, the Company sold all shares in Sequoia Insurance Brokers Pty Ltd and Interprac General
Insurance Pty Ltd. For the year ended 30 June 2024, the assets and liabilities of these businesses were
held for sale. For the prior year ended 30 June 2023, Morrison Securities Pty Ltd was held for sale.
Consolidated
2024
$
2023
$
Cash and cash equivalents
2,093,900
22,889,460
Trade and other receivables
93,848
19,657,033
Prepayments
-
123,269
Plant and equipment
13,146
25,390
Right-of-use assets
217,162
-
Deferred tax asset
-
145,658
Deposits
26,877
20,000
Total assets
2,444,933
42,860,810
Trade payables
2,067,731
25,896,830
Other payables
9,914
13,533
Accrued expenses
15,221
1,894,883
Client trading and security bond
-
2,348,615
Lease liabilities
243,260
-
Employee benefits
59,886
379,927
Total liabilities
2,396,012
30,533,788
Net assets
48,921
12,327,022
Consolidated
2024
$
2023
$
Cash and cash equivalents
Cash and cash equivalents
91,211
11,092,389
Client funds**
2,002,689
11,797,071
Cash and cash equivalents as disclosed above held for sale
2,093,900
22,889,460
* During 2023, Morrison Securities held cash reserves which were required to meet its broker licensing conditions. The conditions of the license, amongst other
requirements, mandate that Morrison Securities must maintain at all times core capital greater than $7,500,000, where at least 90% of this core capital is cash
at bank
** Client funds are not available for general use by the Group
NOTE 8. DISCONTINUED OPERATIONS AND HELD FOR SALE (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
48
NOTE 9. TRADE AND OTHER RECEIVABLES
Consolidated
2024
$
2023
$
Current assets
Trade receivables
3,279,421
1,552,402
Less: Allowance for expected credit losses
-
(30,450)
3,279,421
1,521,952
Other receivables
5,635,260
7,789,642
8,914,681
9,311,594
Allowance for expected credit losses
The ageing of the receivables and allowance for expected credit losses provided for above are as
follows:
Consolidated
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
2024
%
2023
%
2024
$
2023
$
2024
%
2023
%
Not overdue
-
-
7,001,461
8,495,833
-
-
1 to 30 days overdue
-
-
1,170,322
583,682
-
-
31 to 60 days overdue
-
-
163,758
106,501
-
-
Over 60 days overdue
-
19.52%
579,140
156,028
-
30,450
8,914,681
9,342,044
-
30,450
Movements in the allowance for expected credit losses are as follows:
Consolidated
2024
$
2023
$
Opening balance
30,450
20,000
Additional provisions recognised
-
75,450
Receivables written off during the year
(30,450)
(65,000)
Closing balance
-
30,450
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
49
NOTE 10. CONTRACT ASSETS AND DEFERRED COSTS
Consolidated
2024
$
2023
$
Current assets
Contract assets - deferred costs
2,472,610
3,509,343
Non-current assets
Contract assets - deferred costs
928,158
1,018,846
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
4,528,189
9,453,926
Release of deferred cost to profit or loss
(1,127,421)
(4,925,737)
Closing balance
3,400,768
4,528,189
Contract assets – deferred costs relate to the costs of revenue contracts for structured products. These
costs (and associated revenues) are amortised over the life of the contract.
Changes in contract assets and liabilities reflect both:
(a) the release of deferred revenues and costs to the profit or loss through the performance of a
contract; and
(b) new receipts and prepayments for contracts that are yet to be performed.
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
50
NOTE 11. INVESTMENTS IN SHARES
Consolidated
2024
$
2023
$
Current assets
Investments in shares
5,138,684
1,494,565
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous
financial year are set out below:
Opening fair value
1,494,565
1,589,036
Net additions
4,291,713
591,314
Net disposals
(1,093,161)
(685,703)
Revaluation taken to profit or loss
445,596
-
Revaluation recognised in other comprehensive income
(29)
(82)
Closing fair value
5,138,684
1,494,565
Refer to note 26 for further information on fair value measurement.
Investment in shares reflect ordinary shares held in ASX listed companies.
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS
Consolidated
2024
$
2023
$
Current assets
Derivatives - financial assets
1,431,703
2,461,708
1,431,703
2,461,708
Non-current assets
Derivatives - financial assets
1,241,828
1,694,766
1,241,828
1,694,766
Current liabilities
Derivatives - financial liabilities
(1,431,703)
(2,461,708)
(1,431,703)
(2,461,708)
Non-current liabilities
Derivatives - financial liabilities
(1,241,828)
(1,694,766)
(1,241,828)
(1,694,766)
-
-
Refer to note 25 for further information on financial instruments.
Refer to note 26 for further information on fair value measurement.
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
51
The Group is party to derivative financial instruments in the normal course of business in order to
hedge exposure to fluctuations in the value of its investment products issued to the Group’s investors in
accordance with the Group’s financial risk management policies (refer to note 25).
The Group offers its clients investment products structured legally as loans, which provide clients a
derivative exposure to underlying market movements to those products. These exact market risks are in-
turn hedged with exact like-for-like products offered by commercial institutions, leaving the Group with
no exposure to the underlying market risks.
Information about the Group’s exposure to market risk, liquidity risk, and credit risk is disclosed in note 25.
The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each
class of derivative financial assets outlined above.
The Group has an obligation to its clients to pay the value of the investment at expiry. The current asset
amount and the non-current asset amount equals that of the investment obligation described as a
current liability and a non-current liability. The carrying amount equals the amount of the investment
obligation. The rise or fall offset each other.
NOTE 13. OTHER FINANCIAL ASSETS
Consolidated
2024
$
2023
$
Current assets
Receivable for future disposal of business
-
17,891,572
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous
financial year are set out below:
Opening balance
17,891,572
-
Divestment of Morrison Securities Pty Ltd
-
17,891,572
Proceeds from disposal of Morrison Securities Pty Ltd
(17,891,572)
-
Closing balance
-
17,891,572
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
52
NOTE 14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD
Consolidated
2024
$
2023
$
Non-current assets
Investment in associates
10,654,503
500,000
Reconciliation
Reconciliation of the carrying amounts at the beginning and end of the current and
previous financial year are set out below:
Opening carrying amount
500,000
-
Additions
-
500,000
Minority interest in earnings from investments
154,503
-
Addition of 20% investment in associate (Morrison Securities Pty Ltd)
10,000,000
-
Closing carrying amount
10,654,503
500,000
Refer to note 33 for further information on interests in associates.
NOTE 15. GOODWILL AND INTANGIBLE ASSETS
Consolidated
2024
$
2023
$
Non-current assets
Goodwill
17,782,277
17,782,277
Less: Impairment
(7,402,959)
(1,019,547)
10,379,318
16,762,730
Customer list - at cost
21,347,286
15,895,338
Less: Accumulated amortisation
(7,657,842)
(5,217,348)
13,689,444
10,677,990
Regulatory memberships and licences - at cost
258,825
3,827,449
Brand name - at cost
620,401
620,401
Other intangibles - at cost
159,767
923,360
Less: Accumulated amortisation
(69,951)
(830,860)
89,816
92,500
25,037,804
31,981,070
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
53
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous
financial year are set out below:
Consolidated
Goodwill
$
Customer
list
$
Regulatory
memberships
and
licences
$
Brand
name
$
Other
intangibles
$
Total
$
Balance at 1 July 2022
17,115,271
12,747,862
3,831,867
1,821,233
290,402
35,806,635
Additions
-
127,188
-
-
4,900
132,088
Write-down*
(352,541)
(191,577)
-
(1,200,832)
-
(1,744,950)
Amortisation expense
-
(2,005,483)
(4,418)
-
(202,802)
(2,212,703)
Balance at 30 June 2023
16,762,730
10,677,990
3,827,449
620,401
92,500
31,981,070
Additions
-
5,451,947
-
-
-
5,451,947
Disposals from
discontinued operations
-
-
(3,564,206)
-
-
(3,564,206)
Impairment of assets
(6,383,412)
-
-
-
-
(6,383,412)
Amortisation expense
-
(2,440,493)
(4,418)
-
(2,684)
(2,447,595)
Balance at 30 June 2024
10,379,318
13,689,444
258,825
620,401
89,816
25,037,804
* The write-down impairment relates to the discontinued operation of Libertas Financial Planning Pty Ltd. It was part of the Sequoia Licensees Services Group
cash generating unit.
NOTE 15. GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
54
Impairment testing of intangible assets of indefinite life
Intangible assets of indefinite life, consisting of goodwill, regulatory memberships and licences and
brand names acquired through business combinations have been allocated to the following cash
generating units:
Consolidated - 2024
Goodwill
$
Regulatory
memberships
and licences
$
Brand
name
$
Total
$
Cash-generating units (‘CGUs’):
Sequoia Licensees Service Group
1,456,670
258,825
-
1,715,495
Sequoia Professional Services Group
4,846,974
-
620,401
5,467,375
Sequoia Equity Markets Group
1,062,392
-
-
1,062,392
Sequoia Direct Investment Group
3,013,282
-
-
3,013,282
10,379,318
258,825
620,401
11,258,544
Consolidated - 2023
Goodwill
$
Regulatory
memberships
and licences
$
Brand
name
$
Total
$
Cash-generating units (‘CGUs’):
Sequoia Licensees Service Group
1,456,670
263,242
-
1,719,912
Sequoia Professional Services Group
4,930,386
-
620,401
5,550,787
Sequoia Equity Markets Group
4,862,392
3,564,207
-
8,426,599
Sequoia Direct Investment Group
5,513,282
-
-
5,513,282
16,762,730
3,827,449
620,401
21,210,580
The recoverable amount of the Group’s CGUs has been determined by a value-in-use calculation using
a discounted cash flow model, based on a 12-month projection period approved by management and
extrapolated for a further 4 years by using key assumptions.
Key assumptions are those to which the recoverable amount of an asset or CGUs is most sensitive.
The following key assumptions were used in the discounted cash flow model in relation to the intangible
assets of indefinite life associated to various CGUs:
Key assumptions
Revenue growth
rate
%
Cost of sales growth
rate
%
Pre-tax discount
rate
%
Terminal growth
rate
%
Sequoia Wealth Group
4.5%
4.0%
15.6%
1.0%
Sequoia Professional Services Group
4.5%
4.0%
15.6%
1.0%
Sequoia Equity Markets Group
4.5%
4.0%
15.6%
1.0%
Sequoia Direct Investment Group
4.5%
4.0%
15.6%
1.0%
The revenue and cost of sales key assumptions are based on historical growth rates, excluding the
impact of acquisitions and restructuring. The cost of sales growth rate is lower in an effort to contain
costs. The discount rate was obtained from an external consultant for the prior year. All key assumptions
remain the same as the prior year because there was no significant change in conditions.
NOTE 15. GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
55
The intangible assets of indefinite life are considered to be sensitive to these assumptions and are carried
in the statement of financial position at a written-down value. As at 30 June 2024, the assessment has
indicated an impairment to the value of intangible assets of indefinite life for the CGUs: Sequoia Equity
Markets Group and Sequoia Direct Investment Group.
After the sale of Morrison Securities Pty Ltd, the only business in the Sequoia Equity Markets Group was
Sequoia Specialist Investments Pty Ltd. Over the last 2 years, the market for investment products issued
by Sequoia Specialist Investments has declined resulting in a reduction in revenue generated. Based
on the assumptions used to assess impairment, the current value of intangible assets was impaired by
$3.8m.
Sequoia Direct Investment Group include the recent acquisition of Informed Investor, ShareCafe and
Corporate Connect Research. The financial performance of these businesses since acquisition has
not been as expected. While these businesses have been operationally reviewed and undergone
a restructure, the financial performance improvement is not enough to support the current value of
intangible assets. Based on the assumptions used to assess impairment, the current value of intangible
assets was impaired by $2.5m.
Sensitivity
The directors have made judgements and estimates in respect of impairment testing of intangible assets
of indefinite life. Should these judgements and estimates not occur, the resulting goodwill carrying
amount may decrease. The CGU sensitivities are as follows:
(a) Sequoia Direct Investment Group - revenue growth would need to decrease by 0.04% before
goodwill would need to be impaired, with all other assumptions remaining constant. The pre-tax
discount rate would be required to increase by 0.10% before goodwill would need to be impaired, with
all other assumptions remaining constant.
(b) Sequoia Equity Markets Group - revenue growth would need to decrease by 0.02% before goodwill
would need to be impaired, with all other assumptions remaining constant. The pre-tax discount rate
would be required to increase by 0.11% before goodwill would need to be impaired, with all other
assumptions remaining constant.
NOTE 16. TRADE AND OTHER PAYABLES
Consolidated
2024
$
2023
$
Current liabilities
Trade payables
553,676
1,875,653
Accrued expenses
5,843,605
6,225,526
Security and service bonds
-
1,000
Other payables
413,172
1,955,036
6,810,453
10,057,215
Refer to note 25 for further information on financial instruments.
NOTE 15. GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
56
NOTE 17. CONTRACT LIABILITIES AND DEFERRED REVENUE
Consolidated
2024
$
2023
$
Current liabilities
Contract liabilities - deferred revenue
3,336,304
4,504,747
Non-current liabilities
Contract liabilities - deferred revenue
1,157,669
1,305,390
Reconciliation
Reconciliation of the written down values at the beginning and end of the current and
previous financial year are set out below:
Opening balance
5,810,137
12,449,311
Net transfers to revenue
(1,316,164)
(6,639,174)
Closing balance
4,493,973
5,810,137
Contract liabilities - deferred revenue relate primarily to structured product revenues. The revenue is
deferred due to recognition requirements where the revenue and cost are spread over the product life.
Changes in contract assets and liabilities reflect both:
(a) the release of deferred revenues and costs to the profit or loss through the performance of a
contract; and
(b) new receipts and prepayments for contracts that are yet to be performed.
Unsatisfied performance obligations
The aggregate amount of the transaction price allocated to the performance obligations that are
unsatisfied at the end of the reporting period was $4,493,973 as at 30 June 2024 ($5,810,137 as at 30 June
2023) and is expected to be recognised as revenue in future periods as follows:
Consolidated
2024
$
2023
$
1 year or less
3,336,304
4,504,747
Between 1 and 2 years
607,655
1,179,870
Between 2 and 3 years
481,768
125,520
Between 3 and 4 years
68,246
-
4,493,973
5,810,137
Revenue recognition is calculated on the product term remaining up to the maturity date.
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
57
NOTE 18. INTEREST BEARING LOANS AND BORROWINGS
Consolidated
2024
$
2023
$
Current liabilities
Other unsecured loans
-
495,593
Non-current liabilities
Bank loans
-
1,750,000
Refer to note 25 for further information on financial instruments.
All loans and borrowings were repaid during the financial year.
The loan amount drawn for $1,750,000 was fully repaid during the financial year ended 30 June 2024.
As at 30 June 2024, the ANZ financing facility consisted of an uncommitted and undrawn loan facility
(with no redraw) of $13,250,000, of which none was utilised, and a standby letter of guarantee
of $700,000. The standby letter continues to be used as bank guarantees for office leases. The
uncommitted and undrawn loan facility is due to mature on 1 October 2024.
NOTE 19. CONSIDERATION IN ADVANCE
Consolidated
2024
$
2023
$
Current liabilities
Consideration in advance
-
25,041,572
Reconciliation
Reconciliation of the fair values at the beginning and end of the current and previous
financial year are set out below:
Opening balance
25,041,572
-
Divestment of Morrison Securities Pty Ltd
-
25,041,572
Disposal of Morrison Securities Pty Ltd
(25,041,572)
-
Closing balance
-
25,041,572
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
58
NOTE 20. CONTINGENT CONSIDERATION
Consolidated
2024
$
2023
$
Current liabilities
Contingent consideration
2,124,728
2,205,244
Non-current liabilities
Contingent consideration
450,000
-
Contingent consideration relates to future instalment payments mainly for the acquisition of the
Informed Investor group, purchased last financial year, and client books purchased during the financial
year. Refer to note 26 for further information on fair value measurement.
NOTE 21. ISSUED CAPITAL
Consolidated
2024
Shares
2023
Shares
2024
$
2023
$
Ordinary shares - fully paid
130,252,366
135,054,525
51,593,730
53,867,905
Movements in ordinary share capital
Details
Date
Shares
Issue price
$
Balance
01 July 2022
136,279,689
54,491,225
Share buy-back
05 September 2022
(50,000)
$0.5750
(28,750)
Share buy-back
08 September 2022
(164)
$0.5750
(94)
Share buy-back
12 September 2022
(3,441)
$0.5750
(1,979)
Share buy-back
26 September 2022
(46,559)
$0.5700
(26,771)
Share buy-back
27 September 2022
(50,000)
$0.5475
(28,500)
Share buy-back
27 September 2022
(100,000)
$0.5475
(54,750)
Share buy-back
17 October 2022
(175,000)
$0.5286
(92,500)
Share buy-back
24 November 2022
(800,000)
$0.4875
(389,976)
Balance
30 June 2023
135,054,525
53,867,905
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
59
Details
Date
Shares
Issue price
$
Balance
01 July 2023
135,054,525
53,867,905
Share buy-back
07 July 2023
(562,094)
$0.5417
(304,509)
Share buy-back
18 September 2023
(694,000)
$0.5130
(356,060)
Share buy-back
20 September 2023
(150,000)
$0.4900
(73,500)
Share buy-back
25 September 2023
(1)
$0.5000
(1)
Share buy-back
27 September 2023
(310,817)
$0.4911
(152,653)
Share buy-back
29 September 2023
(47,086)
$0.4900
(23,072)
Performance right options converted to shares
29 September 2023
100,000
$0.4850
48,500
Share buy-back
03 October 2023
(128,368)
$0.4890
(62,769)
Share buy-back
04 October 2023
(73,728)
$0.4850
(35,758)
Share buy-back
05 October 2023
(21,731)
$0.4850
(10,540)
Share buy-back
06 October 2023
(38)
$0.4850
(18)
Share buy-back
10 October 2023
(147,361)
$0.4827
(71,124)
Share buy-back
11 October 2023
(30,870)
$0.4800
(14,818)
Share buy-back
13 October 2023
(75,000)
$0.4750
(35,625)
Share buy-back
18 October 2023
(38,409)
$0.4800
(18,436)
Share buy-back
20 October 2023
(11,591)
$0.4800
(5,564)
Share buy-back
24 October 2023
(10,000)
$0.4750
(4,750)
Share buy-back
25 October 2023
(40,000)
$0.4850
(19,400)
Share buy-back
27 October 2023
(100,000)
$0.4775
(47,750)
Share buy-back
31 October 2023
(275,000)
$0.4800
(132,000)
Share buy-back
01 November 2023
(300,000)
$0.4800
(144,000)
Share buy-back
02 November 2023
(200,000)
$0.4800
(96,000)
Share buy-back
03 November 2023
(100,000)
$0.4800
(48,000)
Share buy-back
23 February 2024
(99,980)
$0.4800
(47,990)
Share buy-back
26 February 2024
(310,660)
$0.4797
(149,010)
Share buy-back
27 February 2024
(20,000)
$0.4700
(9,400)
Share buy-back
12 March 2024
(139,406)
$0.4700
(65,521)
Share buy-back
13 March 2024
(10,594)
$0.4700
(4,979)
Exercise of options
30 April 2024
250,000
$0.5771
144,269
Exercise of options
27 May 2024
100,000
$0.6126
61,261
Exercise of options
29 May 2024
500,000
$0.5771
288,538
Share buy-back
05 June 2024
(126,050)
$0.4990
(62,895)
Share buy-back
06 June 2024
(223,950)
$0.4950
(110,855)
Share buy-back
07 June 2024
(100,000)
$0.4950
(49,500)
Share buy-back
11 June 2024
(100,000)
$0.4900
(49,000)
Share buy-back
12 June 2024
(229,600)
$0.4815
(110,560)
Share buy-back
17 June 2024
(220,400)
$0.4750
(104,690)
Share buy-back
19 June 2024
(250,000)
$0.4700
(117,500)
Share buy-back
21 June 2024
(605,425)
$0.4600
(278,496)
Balance
30 June 2024
130,252,366
51,593,730
NOTE 21. ISSUED CAPITAL (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
60
Ordinary shares
Ordinary shares entitle the holder to participate in any dividends declared and any proceeds
attributable to shareholders should the Company be wound up, in proportions that consider both the
number of shares held and the extent to which those shares are paid up. The fully paid ordinary shares
have no par value and the Company does not have a limited amount of authorised capital.
On a poll, whether in attendance or by proxy, each share shall have one vote.
Share buy-back
On 22 May 2024, the directors proposed a further extension to the existing on-market buy-back
(proposed on 4 May 2022) of shares from eligible shareholders. The extension is until 23 May 2025. As at
30 June 2024, 5,752,159 shares had been bought-back at a cost of $2,816,743 (2023: 1,225,164 shares at
a cost of $623,320).
Capital risk management
The Group’s objectives when managing capital is to safeguard its ability to continue as a going
concern, so that it can provide returns for shareholders and benefits for other stakeholders and to
maintain an optimum capital structure to reduce the cost of capital.
Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt.
Net debt is calculated as total borrowings less cash and cash equivalents.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid
to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The Group would look to raise capital when an opportunity to invest in a business or company was
seen as value adding relative to the current Company’s share price at the time of the investment. The
Group is not actively pursuing additional capital raises as it continues to integrate and grow its existing
businesses in order to maximise synergies.
As per ASX listing rules, the Group also has the ability to raise capital, in line with the placement
capacity. This is broadly 15% of its fully paid ordinary issued capital, within a 12 month period.
The capital risk management policy remains unchanged from prior years.
NOTE 22. RESERVES
Consolidated
2024
$
2023
$
Financial assets at fair value through other comprehensive income reserve
548,118
548,147
Share-based payments reserve
-
261,885
548,118
810,032
Financial assets at fair value through other comprehensive income reserve
The reserve is used to recognise increments and decrements in the fair value of financial assets at fair
value through other comprehensive income.
Share-based payments reserve
The reserve is used to recognise the value of equity benefits provided to employees and directors as
part of their remuneration, and other parties as part of their compensation for services.
NOTE 21. ISSUED CAPITAL (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
61
NOTE 23. RETAINED PROFITS/(ACCUMULATED LOSSES)
Consolidated
2024
$
2023
$
Accumulated losses at the beginning of the financial year
(11,635,741)
(6,833,409)
Profit/(loss) after income tax expense for the year
23,992,502
(2,630,431)
Transfer from share-based payments reserve
160,349
-
Dividends paid
(7,983,853)
(2,171,901)
Retained profits/(accumulated losses) at the end of the financial year
4,533,257
(11,635,741)
NOTE 24. DIVIDENDS
Details of dividends (1)
Cents per share
$
2023 Special dividend (paid 29 September 2023)(2)
4.00
5,355,699
2024 Interim dividend (paid 29 March 2024)(3)
2.00
2,628,154
2024 Final dividend declared(4)
2.50
3,256,309(5)
2024 Special dividend declared(4)
2.50
3,256,309(5)
(1) All dividends are fully franked
(2) 2023 Special dividend comprised of a cash dividend on completion of divestment of Morrison Securities.
(3) 2024 Interim dividend comprised of a cash dividend.
(4) Record date for determining entitlement to the 2024 Final and Special dividends is 3 September 2024, and is to be paid on 11 September 2024.
(5) Estimated total dollar value based on shares at 30 June 2024.
Franking credits
Consolidated
2024
$
2023
$
Franking credits available for subsequent financial years based on a tax rate of 30%
21,083,383
14,626,517
The above amounts represent the balance of the franking account as at the end of the financial year,
adjusted for:
• franking credits that will arise from the payment of the amount of the provision for income tax at the
reporting date
• franking debits that will arise from the payment of dividends recognised as a liability at the reporting
date
• franking credits that will arise from the receipt of dividends recognised as receivables at the reporting
date
NOTE 25. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group’s financial instruments consist mainly of deposits with banks, accounts receivable and
payable, derivative assets and liabilities, investments in shares and loans payable.
This note provides details of the Group’s financial risk management objectives and policies and
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
62
describes the methods used by management to control risk. In addition, this note includes a discussion
of the extent to which financial instruments are used, the associated risks and the business purpose
served.
One of the Group’s main activities is to issue investments to its product holders which provide returns
based on the performance of an underlying reference asset, typically a single index or a single listed
equity. Different underlying reference assets, with varying features are issued in separate series. The
series are exposed to securities listed on global or local exchanges. The products issued to the product
holders have a maturity of between 18 months and 48 months from the date of issue. On maturity, if
the investment has performed sufficiently, the product holder has the option to contribute in cash the
notional value of the investment on issue date to receive a delivery asset (a liquid security on the ASX)
equal to the value of the underlying reference asset or the value in cash of the financial liability. The
Group enters into a financial instrument with an investment bank, which hedges each series that is
offered to its product holders. The Group ensures that the notional exposure across all its products are
covered via the arrangement, and as such mitigates its risk in this fashion.
The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk), credit
risk and liquidity risk.
The Board of Directors monitor and manage financial risk exposures of the Group. The Board of Directors
monitors the Group’s financial risk management policies and exposures and approves financial
transactions within the scope of its authority. It also reviews the effectiveness of internal controls relating
to financing risk and interest rate risk.
Consolidated
2024
$
2023
$
Financial assets
Cash and cash equivalents
16,832,354
9,392,306
Trade and other receivables
8,914,681
9,311,594
Investment in shares
5,158,684
1,514,565
Derivative assets
2,673,531
4,156,474
Investments accounted for using the equity method
10,654,503
500,000
Other financial assets
-
17,891,572
Total financial assets
44,233,753
42,766,511
Financial liabilities
Trade and other payables
6,810,453
10,057,215
Interest bearing loans and borrowings
-
1,750,000
Other loans
-
495,593
Lease liabilities
704,641
1,938,241
Derivative liabilities
2,673,531
4,156,474
Contingent consideration
2,574,728
2,205,244
Consideration in advance
-
25,041,572
Total financial liabilities
12,763,353
45,644,339
NOTE 25. FINANCIAL INSTRUMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
63
Market risk
Market risk is the risk that changes in market prices, such as interest rates and foreign exchange rates
will affect the Group’s income or value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return on risk.
The Group issues a structured product to the product holder that is hedged with the financial instrument
that it purchases from an investment bank. The details of the financial instruments are such that the
future cash flows from the financial assets offset the cash flows needed to settle the financial liabilities.
The Group uses this arrangement to mitigate the market risks below, except for credit risk.
Price risk
Price risk arises from changes in underlying investments designated in the financial instruments held by
the Group for which values in the future are uncertain.
The Group mitigates the above price risk by ensuring that price risk in the financial instruments is offset
with one another. The difference in fair value between the financial asset and liability held through profit
or loss is as a result of the premium associated with the financial liability arising from being issued in the
retail market. The Group does not monitor the price risk associated with the premium, as price risk would
only result if the Group were to transfer the liability, and since the Group has no intention of transferring
the financial liability, no disclosures regarding the sensitivity to price risk have been made.
The Group is, therefore, not exposed to any significant price risk in relation to issued structured products.
The Group has an exposure to price risk on its listed and unlisted equity investments and, as at year end,
a 20% increase or decrease in price would affect the shareholding value by approximately $1,032,000.
Interest rate risk
Interest rate risk is the risk that the value of the Group’s financial instruments will fluctuate due to
changes in market interest rates.
The Group’s cash and cash equivalents are exposed to interest rate risk, however the Directors of the
Group manage financial instruments to ensure that interest rate risk remains hedged and is therefore
offsetting.
The Group is not exposed to any significant interest rate risk.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance
date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those
assets, as disclosed in the statement of financial position and notes to the financial statements.
The Group has adopted a lifetime expected loss allowance in estimating expected credit losses to
trade receivables through the use of a provisions matrix using fixed rates of credit loss provisioning.
These provisions are considered representative across all customers of the Group based on recent sales
experience, historical collection rates and forward-looking information that is available.
Credit risk is managed through the maintenance of procedures (such procedures include the utilisation
of systems for the approval, granting and renewal of credit limits, regular monitoring of exposures against
such limits and monitoring of the financial stability of significant customers and counterparties), ensuring
to the extent possible, that customers and counterparties to transactions are of sound credit worthiness.
Such monitoring is used in assessing receivables for impairment.
Generally, trade receivables are written off when there is no reasonable expectation of recovery.
NOTE 25. FINANCIAL INSTRUMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
64
Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement
activity and a failure to make contractual payments for a period greater than 1 year.
Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit
rating, or in entities that the Board of Directors has otherwise cleared as being financially sound. Where
the Group is unable to ascertain a satisfactory credit risk profile in relation to a customer or counterparty,
the risk may be further managed by obtaining security by way of personal or commercial guarantees
over assets of sufficient value which can be claimed against in the event of any default.
The financial products issued by Sequoia Specialist Investments Pty Ltd (‘Issuer’) are secured obligations
of the Issuer. Investors are granted a charge which is held on trust by the security trustee. If the Issuer fails
to (i) make a payment or delivery on its due date; or (ii) meet any other obligation and in the Security
Trustee’s opinion, the failure is materially adverse to the investors and cannot be remedied (or has not
been remedied within 5 business days of written notice), the Security Trustee may enforce the charge.
In this case the investors are unsecured creditors of the provider of the hedge assets. Investors’ rights
of recourse against the Issuer on a default are limited to the assets subject to the charge. This structure
has the effect of passing through the credit rating of the provider of the hedge asset and protecting
different financial product series from cross-liability issues (other than on an insolvency of either the Issuer
or the provider of the hedge asset). The Issuer will only deal with an investment-grade (or better) bank or
a subsidiary of an investment-grade (or better) bank.
Investments grades are a rating or indicator of particular debt obligations which have a low risk of
default. Various rating agencies rate an investment bank’s creditworthiness. Different rating firms
use different designations. Sequoia Specialist Investments Pty Ltd hedge providers are considered
“investment grade” and the credit worthiness of our investment bank hedge contracts providers are
between high credit quality (‘AAA’ and ‘AA’ ) and medium credit quality (‘A’ and ‘BBB’). Therefore, the
risk of default of the selected hedge providers are considered low. In addition, if the investment bank
were to unexpectedly default the resulting financial risk would be ultimately borne by the end investor,
due to the pass through of the credit risk of the hedge provider to the end investor.
The following tables detail the Group’s potential exposure, should the counterparties be unable to meet
their obligations:
Consolidated - 2024
Fair value
$
Notional value
$
Derivative assets
2,673,531
135,799,431
Consolidated - 2023
Fair value
$
Notional value
$
Derivative assets
4,156,474
160,356,879
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and
cash equivalents) and available borrowing facilities to be able to pay debts as and when they become
due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing
facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of
financial assets and liabilities.
Remaining contractual maturities
The following tables detail the Group’s maturity for its financial instrument liabilities. The tables have been
NOTE 25. FINANCIAL INSTRUMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
65
drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on
which the financial liabilities are required to be paid.
Consolidated - 2024
1 year or less
$
Between 1
and 5 years
$
Remaining
contractual
maturities
$
Non-derivatives
Non-interest bearing
Trade payables
553,676
-
553,676
Other payables
413,172
-
413,172
Contingent consideration
2,124,728
450,000
2,574,728
Total non-derivatives
3,091,576
450,000
3,541,576
Derivatives
Value hedges, net settled
1,431,703
1,241,828
2,673,531
Total derivatives
1,431,703
1,241,828
2,673,531
Consolidated - 2023
1 year or less
$
Between 1
and 5 years
$
Remaining
contractual
maturities
$
Non-derivatives
Non-interest bearing
Trade payables
1,875,653
-
1,875,653
Other payables
1,576,564
378,472
1,955,036
Contingent consideration
2,205,244
-
2,205,244
Interest-bearing - variable
Loan facility
-
1,750,000
1,750,000
Other loans
495,593
-
495,593
Total non-derivatives
6,153,054
2,128,472
8,281,526
Derivatives
Value hedges, net settled
2,461,708
1,694,766
4,156,474
Total derivatives
2,461,708
1,694,766
4,156,474
The cash flows in the maturity analysis above are not expected to occur significantly earlier than
contractually disclosed above.
NOTE 25. FINANCIAL INSTRUMENTS (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
66
NOTE 26. FAIR VALUE MEASUREMENT
Fair value hierarchy
The following tables detail the Group’s assets and liabilities, measured or disclosed at fair value, using
a three level hierarchy, based on the lowest level of input that is significant to the entire fair value
measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly or indirectly
Level 3: Unobservable inputs for the asset or liability
Consolidated - 2024
Level 1
$
Level 2
$
Level 3
$
Total
$
Assets
Listed ordinary shares
5,138,684
-
-
5,138,684
Unlisted ordinary shares
-
-
20,000
20,000
Derivative financial instruments
-
2,673,531
-
2,673,531
Total assets
5,138,684
2,673,531
20,000
7,832,215
Liabilities
Derivative financial instruments
-
2,673,531
-
2,673,531
Contingent consideration
-
-
2,574,728
2,574,728
Total liabilities
-
2,673,531
2,574,728
5,248,259
Consolidated - 2023
Level 1
$
Level 2
$
Level 3
$
Total
$
Assets
Listed ordinary shares
1,494,565
-
-
1,494,565
Unlisted ordinary shares
-
-
20,000
20,000
Derivative financial instruments
-
4,156,474
-
4,156,474
Total assets
1,494,565
4,156,474
20,000
5,671,039
Liabilities
Derivative financial instruments
-
4,156,474
-
4,156,474
Contingent consideration
-
-
2,205,244
2,205,244
Total liabilities
-
4,156,474
2,205,244
6,361,718
There were no transfers between levels during the financial year.
The carrying amounts of trade and other receivables, trade and other payables and other financial
liabilities approximate their fair values due to their short-term nature.
The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at
the current market interest rate that is available for similar financial liabilities.
Valuation techniques for fair value measurements categorised within level 2 and level 3
Financial instruments that are not traded in an active market are determined using valuation
techniques. These valuation techniques maximise the use of observable market data where it is
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
67
available and relies as little as possible on entity specific estimates. If all significant inputs required to fair
value an instrument are observable, the instrument is included in level 2. If one or more of the significant
inputs is not based on observable market data, the instrument is included in level 3.
Unquoted investments have been valued using prices evident in recent third party transactions.
The valuation process is managed by the Chief Operating Decision Makers (‘CODM’) of the Group
who perform and validate valuations of non-property assets required for financial reporting purposes
(including level 3 fair values). Discussion on valuation processes and outcomes are held between the
CODM, CFO and Audit committee every six months.
Level 3 assets and liabilities
Movements in level 3 assets and liabilities during the current and previous financial year are set out
below:
Consolidated
Assets
Unlisted
ordinary
shares
$
Liabilities
Contingent
consideration
$
Totals
$
Balance at 1 July 2022
62,302
(3,140,182)
(3,077,880)
Additions
-
(15,062)
(15,062)
Disposals
(42,302)
-
(42,302)
Amounts paid
-
750,000
750,000
Consideration deemed non-payable
-
200,000
200,000
Balance at 30 June 2023
20,000
(2,205,244)
(2,185,244)
Additions
-
(1,420,000)
(1,420,000)
Amounts paid
-
716,259
716,259
Write-back to profit or loss for consideration not payable
-
334,257
334,257
Balance at 30 June 2024
20,000
(2,574,728)
(2,554,728)
The contingent consideration includes $1,090,000 which relates to the purchase of the Castle Corporate
customer list. If annual revenue of $2.0m is not reached in the second year after acquisition, the final
tranche payment of $450,000 will not be paid.
The remaining contingent consideration relates to a prior year acquisition. Refer to note 37 for further
information.
NOTE 26. FAIR VALUE MEASUREMENT (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
68
NOTE 27. KEY MANAGEMENT PERSONNEL DISCLOSURES
Compensation
The aggregate compensation made to directors and other members of key management personnel of
the Group is set out below:
Consolidated
2024
$
2023
$
Short-term employee benefits
1,228,503
1,020,569
Long-term benefits
37,947
24,326
Post-employment benefits
73,531
60,129
Share-based payments
30,988
66,412
1,370,969
1,171,436
Refer to the ‘Remuneration report (audited)’ section of the Directors’ report for a detailed breakdown.
NOTE 28. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided by William Buck,
the auditor of the Company:
Consolidated
2024
$
2023
$
Audit services - William Buck Audit (Vic) Pty Limited
Audit or review of the financial statements*
239,053
192,588
Other services - William Buck (Vic) Pty Limited
Tax services
18,800
15,818
Other services
21,283
16,991
40,083
32,809
279,136
225,397
* The increase in cost is mainly due to the timing of when invoices were received from William Buck.
NOTE 29. CONTINGENT LIABILITIES
As part of the ANZ financing facility, the Group has given bank guarantees as at 30 June 2024 of
$600,297 (30 June 2023: $677,238) in relation to rental bonds. No term deposit was required for the ANZ
bank guarantees.
The Group’s legal counsel is currently acting on several matters referred to the Australian Financial
Complaints Authority (‘AFCA’) relating to the provision of financial services to its retail clients. The Group
has assessed any potential obligations relating to these complaints after pursuing a recourse from the
advisers in the following manner:
• Those complaints for which there is a probable likelihood of restitution being paid, have been accrued
in these financial statements, together with any associated legal costs and net of any available
insurance cover; and
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
69
• The Directors have assessed complaints for which there is less than a probable likelihood of restitution
(including the impact of legal costs and insurance), and have chosen not to disclose the likely amount
as they are still subject to proceedings with AFCA and potential recourse from the advisers, and the
disclosure of such amounts is likely to prejudice those proceedings.
The Group is not aware of any other contingent liabilities that were materially significant to these
financial statements.
NOTE 30. RELATED PARTY TRANSACTIONS
Parent entity
Sequoia Financial Group Limited is the parent entity.
Associates
Interests in associates are set out in note 33.
Joint ventures
Interests in joint ventures are set out in note 34.
Key management personnel
Disclosures relating to key management personnel are set out in note 27 and the remuneration report
included in the directors’ report.
Transactions with related parties
During the financial year, $18,521 (30 June 2023: $80,933) was paid or payable for services provided by
Cooper Grace Ward, a related party entity of director, Charles Sweeney. This is not deemed personal
remuneration.
Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.
NOTE 31. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
2024
$
2023
$
Profit after income tax
34,824,753
2,722,116
Total comprehensive income
34,824,753
2,722,116
NOTE 29. CONTINGENT LIABILITIES (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
70
Statement of financial position
Parent
2024
$
2023
$
Total current assets
13,468,963
360,760
Total assets
79,720,572
91,114,092
Total current liabilities
2,840,339
8,201,875
Total liabilities
52,392,887
63,350,888
Equity
Issued capital
87,526,850
89,801,025
Financial assets at fair value through other comprehensive income reserve
46,070
46,070
Share-based payments reserve
-
261,885
Accumulated losses
(60,245,235)
(62,345,776)
Total equity
27,327,685
27,763,204
Guarantees entered into by the parent entity in relation to the debts of its subsidiaries
The parent entity had no guarantees in relation to the debts of its subsidiaries.
Contingent liabilities
The parent entity has considerations payable relating to the acquisitions of the Informed Investor group
and a client book purchased during the last financial year.
Capital commitments - Property, plant and equipment
The parent entity had no capital commitments for property, plant and equipment as at 30 June 2024
and 30 June 2023.
Material accounting policy information
The accounting policies of the parent entity are consistent with those of the Group, as disclosed in note
2, except for the following:
• Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
• Dividends received from subsidiaries are recognised as other income by the parent entity and are
eliminated at the Group level.
NOTE 31. PARENT ENTITY INFORMATION (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
71
NOTE 32. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following
subsidiaries in accordance with the accounting policy described in note 2:
Wholly owned subsidiaries
Parent
Name
Principal place
of business /
Country of
incorporation
Ownership
interest
2024
%
Ownership
interest
2023
%
The Cube Financial Group Pty Ltd
(a)
Australia
100.0%
100.0%
Trade Dealer Online Pty Ltd
(a)
Australia
100.0%
100.0%
Sequoia Group Holdings Pty Ltd
(a)
Australia
100.0%
100.0%
My Own Super Fund Pty Ltd
(a)
Australia
100.0%
100.0%
Sequoia Wealth Group Pty Ltd
(a)
Australia
100.0%
100.0%
Docscentre Pty Ltd
(a)
Australia
100.0%
100.0%
Informed Investor Pty Ltd
(a)
Australia
100.0%
100.0%
Sequoia Insurance Brokers Pty Ltd
(a)(3)
Australia
100.0%
100.0%
Sequoia Premium Funding Pty Ltd
(a)
Australia
100.0%
100.0%
Sequoia Lending Pty Ltd
(b)
Australia
100.0%
100.0%
Acacia Administrative Services Pty Ltd
(b)(1)
Australia
100.0%
100.0%
Sequoia Direct Pty Ltd
(b)(2)
Australia
100.0%
100.0%
Sequoia Specialist Investments Pty Ltd
(b)
Australia
100.0%
100.0%
Sequoia Asset Management Pty Ltd
(b)
Australia
100.0%
100.0%
Finance TV Pty Ltd
(b)
Australia
100.0%
100.0%
Corporate Connect Research Pty Ltd
(b)
Australia
100.0%
100.0%
ShareCafe Pty Ltd
(b)
Australia
100.0%
100.0%
Morsec Nominees Pty Ltd
(c)(5)
Australia
-
100.0%
Sequoia Nominees No.1 Pty Ltd
(d)
Australia
100.0%
100.0%
Sequoia Home Loans Pty Ltd
(e)
Australia
100.0%
100.0%
Sequoia Family Office Pty Ltd
(f)
Australia
100.0%
100.0%
Sequoia Wealth Management Pty Ltd
(f)
Australia
100.0%
100.0%
Sequoia Corporate Finance Pty Ltd
(f)
Australia
100.0%
100.0%
Libertas Financial Planning Pty Ltd
(f)(4)
Australia
100.0%
100.0%
InterPrac Financial Planning Pty Ltd
(f)
Australia
100.0%
100.0%
Sage Capital Group Pty Ltd
(f)
Australia
100.0%
100.0%
Interprac Securities Pty Ltd
(f)
Australia
100.0%
100.0%
Australian Business Structures Pty Ltd
(g)
Australia
100.0%
-
Australian Practical Superannuation Fund Pty Ltd
(g)
Australia
100.0%
100.0%
Tax Engine Pty Ltd
(g)
Australia
100.0%
100.0%
PantherCorp CST Pty Ltd
(g)
Australia
100.0%
100.0%
Docscentre Legal Pty Ltd
(g)
Australia
100.0%
100.0%
Sequoia Superannuation Pty Ltd
(h)
Australia
100.0%
100.0%
SMSF Engine Pty Ltd
(h)
Australia
100.0%
100.0%
Interprac General Insurance Pty Ltd
(i)(3)
Australia
100.0%
100.0%
Bourse Data Pty Ltd
(j)
Australia
100.0%
100.0%
Yieldreport Pty Ltd
(5)
Australia
-
100.0%
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
72
(a) Subsidiary of Sequoia Financial Group Limited
(b) Subsidiary of Sequoia Group Holdings Pty Ltd
(c) Subsidiary of Morrison Securities Pty Ltd
(d) Subsidiary of Sequoia Specialist Investments Pty Ltd
(e) Subsidiary of Sequoia Asset Management Pty Ltd
(f) Subsidiary of Sequoia Wealth Group Pty Ltd
(g) Subsidiary of Docscentre Pty Ltd
(h) Subsidiary of My Own Super Fund Pty Ltd
(i) Subsidiary of Sequoia Insurance Brokers Pty Ltd
(j) Entity has been deregistered
(1) Acacia Administrative Services Pty Ltd acts as a service entity for the Group with all employees engaged under this entity
(2) In process of being deregistered
(3) Held for sale
(4) In process of liquidation
(5) Company was sold
NOTE 33. INTERESTS IN ASSOCIATES
Interests in associates are accounted for using the equity method of accounting. Information relating to
associates that are material to the Group are set out below:
Name
Principal place
of business /
Country of
incorporation
Ownership
interest
2024
%
Ownership
interest
2023
%
Morrison Securities Pty Ltd
Australia
20.00%
49.90%
Euree Asset Management Pty Ltd
Australia
20.00%
20.00%
NOTE 32. INTERESTS IN SUBSIDIARIES (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
73
NOTE 33. INTERESTS IN ASSOCIATES (CONTINUED)
Summarised financial information
Morrison Securities
2024
$
2023
$
Summarised statement of financial position
Current assets
62,056,086
42,696,842
Non-current assets
211,551
191,148
Total assets
62,267,637
42,887,990
Current liabilities
47,644,632
28,696,255
Non-current liabilities
1,559,615
2,369,045
Total liabilities
49,204,247
31,065,300
Net assets
13,063,390
11,822,690
Summarised statement of profit or loss and other comprehensive income
Revenue
31,237,804
28,310,564
Expenses
(29,465,387)
(26,624,549)
Profit before income tax
1,772,417
1,686,015
Income tax expense
(531,716)
(508,095)
Profit after income tax
1,240,701
1,177,920
Other comprehensive income
-
-
Total comprehensive income
1,240,701
1,177,920
Reconciliation of the Group’s carrying amount
Opening carrying amount
-
-
Share of profit after income tax
195,996
-
Fair value at time of disposal
10,000,000
-
Closing carrying amount
10,195,996
-
NOTE 34. INTERESTS IN JOINT VENTURES
Interests in joint ventures are accounted for using the equity method of accounting. Information relating
to joint ventures that are material to the Group are set out below:
Ownership interest
Name
Principal place of business /
Country of incorporation
2024
%
2023
%
Taking Control Pty Ltd
Australia
50.00%
50.00%
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
74
NOTE 35. CASH FLOW INFORMATION
Reconciliation of profit/(loss) after income tax to net cash used in operating activities
Consolidated
2024
$
2023
$
Profit/(loss) after income tax expense for the year
23,992,502
(2,630,431)
Adjustments for:
Depreciation and amortisation
3,780,616
3,608,827
Impairment of goodwill
6,383,412
-
Net fair value loss on investments
378,828
3,876,097
Net fair value gain on retained investment
(6,880,593)
-
Share of profit - associates
(154,503)
-
Gain on disposal of business
(28,622,959)
-
Share-based payments
38,246
92,640
Dividends/interest on investments declared not received
(36,307)
(7,675)
Consideration deemed non-payable
-
(200,000)
Interest for lease accounting
58,099
87,802
Change in operating assets and liabilities:
Increase in trade and other receivables
(103,431)
(21,887,313)
(Increase)/decrease in client related receivables
(7,147,287)
6,329,693
Decrease in contract assets and deferred costs
1,127,421
4,925,738
Decrease in inventories
-
30,499
Decrease/(increase) in deferred tax assets
7,261,042
(4,120,847)
Decrease/(increase) in prepayments
173,661
(349,354)
(Increase)/decrease in other operating assets
(583,155)
643,276
(Decrease)/increase in trade and other payables
(552,755)
61,965
Increase/(decrease) in client related payables
6,312,357
(13,345,385)
Decrease in contract liabilities and deferred revenue
(1,316,165)
(6,639,173)
(Decrease)/increase in provision for income tax
(6,072,684)
5,821,465
Decrease in deferred tax liabilities
(1,267,923)
(1,989,124)
Decrease in employee benefits
(271,472)
(219,779)
(Decrease)/increase in other operating liabilities
(1,319,240)
20,318,180
Net cash used in operating activities
(4,822,290)
(5,592,899)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
75
Changes in liabilities arising from financing activities
Consolidated
Bank
loan
$
Capital
finance and
other
loans
$
Lease
liability
$
Total
$
Balance at 1 July 2022
-
490,777
2,436,915
2,927,692
Net cash from/(used in) financing activities
1,750,000
4,816
(1,038,370)
716,446
Additions
-
-
442,736
442,736
Interest on lease liability
-
-
87,802
87,802
Other changes
-
-
9,158
9,158
Balance at 30 June 2023
1,750,000
495,593
1,938,241
4,183,834
Net cash used in financing activities
(1,750,000)
(495,593)
(1,048,439)
(3,294,032)
Liability held for sale
-
-
(243,260)
(243,260)
Interest on lease liability
-
-
58,099
58,099
Balance at 30 June 2024
-
-
704,641
704,641
NOTE 36. EARNINGS PER SHARE
Consolidated
2024
$
2023
$
Earnings per share for loss from continuing operations
Loss after income tax attributable to the owners of Sequoia Financial Group Limited
(3,142,515)
(3,948,032)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings
per share
132,405,204
135,483,329
Weighted average number of ordinary shares used in calculating diluted earnings
per share
132,405,204
135,483,329
Cents
Cents
Basic earnings per share
(2.373)
(2.914)
Diluted earnings per share
(2.373)
(2.914)
Consolidated
2024
$
2023
$
Earnings per share for profit from discontinued operations
Profit after income tax attributable to the owners of Sequoia Financial Group Limited
27,135,017
1,317,601
NOTE 35. CASH FLOW INFORMATION (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
76
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per
share
132,405,204
135,483,329
Weighted average number of ordinary shares used in calculating diluted earnings per
share
132,405,204
135,483,329
Cents
Cents
Basic earnings per share
20.494
0.973
Diluted earnings per share
20.494
0.973
Consolidated
2024
$
2023
$
Earnings per share for (loss)/profit
Profit/(loss) after income tax attributable to the owners of Sequoia Financial Group Limited
23,992,502
(2,630,431)
Number
Number
Weighted average number of ordinary shares used in calculating basic earnings per share
132,405,204
135,483,329
Weighted average number of ordinary shares used in calculating diluted earnings
per share
132,405,204
135,483,329
Cents
Cents
Basic earnings per share
18.121
(1.942)
Diluted earnings per share
18.121
(1.942)
NOTE 37. EVENTS AFTER THE REPORTING PERIOD
Sale of Sequoia Insurance Brokers and InterPrac General Insurance
On 1 July 2024, the Group sold 100% of its general insurance broking businesses to WIB Corporate Pty Ltd.
The total consideration price is in the range $4.40m to $5.00m for the sale of Sequoia Insurance Brokers
Pty Ltd and InterPrac General Insurance Pty Ltd. The Group has received initial cash consideration paid
of $1.05m for the sale in the subsequent period. The second tranche of $1.00m is payable by 31 October
2024, with the final tranche payable in October 2025 subject to specific performance hurdles being
achieved.
Restructure of operating segments
The Group announced the restructure of the operating segments, effective from 1 July 2024, which are
used in assessing performance and in determining the allocation of resources. This restructure reduces
the existing four operating segments down to two. The Head Office segment remains unchanged.
The two operating segments are as follows:
(1) Licensee and Adviser Services - Provide licensee services to financial planners and advisors, provide
financial planning personal and general advice to wholesale and retail investors, and provide listed and
private companies with equity capital markets support, M&A advice, corporate access and investor
relations.
NOTE 36. EARNINGS PER SHARE (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
77
(2) Legal and Administration Services - Act as service provider to accountancy firms, dealer groups,
financial planning, law firms and direct trustees.
Appointment of Non-Executive Chairman
On 7 August 2024, the Group announced the appointment of Mike Ryan as the new Chairman of the
Board. The acting Chairman, Charles Sweeney (resigned on 7 August 2024), will continue in his role as
non-executive director and Chair of the Risk and Compliance Committee.
Legal proceedings for and against Tim McGowen update
The Company and Tim McGowen have agreed to settle at an undisclosed amount and, on 15 August
2024, executed a deed of release.
No other matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may
significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs
in future financial years.
NOTE 37. EVENTS AFTER THE REPORTING PERIOD (CONTINUED)
Notes to the consolidated financial statements
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
78
Entity name
Entity type(1)
Place formed /
Country of
incorporation
Ownership
interest
%
Tax residency(2)
Sequoia Financial Group Limited
Body corporate
Australia
Australian
The Cube Financial Group Pty Ltd
Body corporate
Australia
100.0%
Australian
Trade Dealer Online Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Group Holdings Pty Ltd
Body corporate
Australia
100.0%
Australian
My Own Super Fund Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Wealth Group Pty Ltd
Body corporate
Australia
100.0%
Australian
Docscentre Pty Ltd
Body corporate
Australia
100.0%
Australian
Informed Investor Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Insurance Brokers Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Premium Funding Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Lending Pty Ltd
Body corporate
Australia
100.0%
Australian
Acacia Administrative Services Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Direct Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Specialist Investments Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Asset Management Pty Ltd
Body corporate
Australia
100.0%
Australian
Finance TV Pty Ltd
Body corporate
Australia
100.0%
Australian
Corporate Connect Research Pty Ltd
Body corporate
Australia
100.0%
Australian
ShareCafe Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Nominees No.1 Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Home Loans Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Family Office Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Wealth Management Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Corporate Finance Pty Ltd
Body corporate
Australia
100.0%
Australian
Libertas Financial Planning Pty Ltd
Body corporate
Australia
100.0%
Australian
InterPrac Financial Planning Pty Ltd
Body corporate
Australia
100.0%
Australian
Sage Capital Group Pty Ltd
Body corporate
Australia
100.0%
Australian
Interprac Securities Pty Ltd
Body corporate
Australia
100.0%
Australian
Australian Business Structures Pty Ltd
Body corporate
Australia
100.0%
Australian
Australian Practical Superannuation Fund Pty Ltd
Body corporate
Australia
100.0%
Australian
Tax Engine Pty Ltd
Body corporate
Australia
100.0%
Australian
PantherCorp CST Pty Ltd
Body corporate
Australia
100.0%
Australian
Docscentre Legal Pty Ltd
Body corporate
Australia
100.0%
Australian
Sequoia Superannuation Pty Ltd
Body corporate
Australia
100.0%
Australian
SMSF Engine Pty Ltd
Body corporate
Australia
100.0%
Australian
Interprac General Insurance Pty Ltd
Body corporate
Australia
100.0%
Australian
(1) None of the entities noted above were trustees of trusts within the Group, partners in a partnership within the Group or participants in a joint venture within
the Group.
(2) All entities are Australian tax residents, there are no foreign tax jurisdictions of tax residency.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
79
Consolidated entity disclosure statement
BASIS OF PREPARATION
This consolidated entity disclosure statement (‘CEDS’) has been prepared in accordance with
subsection 295(3A)(a) of the Corporations Act 2001. The entities listed in the statement are Sequoia
Financial Group Limited and all the entities it controls as at 30 June 2024 in accordance with AASB 10
‘Consolidated Financial Statements’.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
80
Consolidated entity disclosure statement
In the directors’ opinion:
• the attached financial statements and notes comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements;
• the attached financial statements and notes comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board as described in note 2 to the financial
statements;
• the attached financial statements and notes give a true and fair view of the Group’s financial position
as at 30 June 2024 and of its performance for the financial year ended on that date;
• there are reasonable grounds to believe that the Company will be able to pay its debts as and when
they become due and payable; and
• the information disclosed in the attached consolidated entity disclosure statement is true and correct.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the
Corporations Act 2001.
On behalf of the directors
___________________________
Mike Ryan
Chairman
26 August 2024
Sydney
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
81
Directors’ declaration
Level 20, 181 William Street, Melbourne VIC 3000
+61 3 9824 8555
vic.info@williambuck.com
williambuck.com.au
William Buck is an association of firms, each trading under the name of William Buck
across Australia and New Zealand with affiliated offices worldwide.
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report to the members of Sequoia Financial
Group Limited
Report on the audit of the financial report
Our opinion on the financial report
In our opinion, the accompanying financial report of Sequoia Financial Group Limited (the Company) and
its subsidiaries (the Group) is in accordance with the Corporations Act 2001, including:
— giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its financial
performance for the year then ended; and
— complying with Australian Accounting Standards and the Corporations Regulations 2001.
What was audited?
We have audited the financial report of the Group, which comprises:
— the consolidated statement of financial position as at 30 June 2024,
— the consolidated statement of profit or loss and other comprehensive income for the year then ended,
— the consolidated statement of changes in equity for the year then ended,
— the consolidated statement of cash flows for the year then ended,
— notes to the financial statements, including material accounting policy information,
— the consolidated entity disclosure statement, and
— the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s responsibilities for the audit of the financial report section of
our report. We are independent of the Group in accordance with the auditor independence requirements of
the Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
82
Independent auditor’s report to the members
of Sequoia Financial Group Limited
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report of the current period. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
ACCOUNTING
FOR THE
DIVESTMENT
OF MORRISON
SECURITIES
PTY LIMITED
Area of focus
(refer also to notes 2, 3 & 8)
During the year ended 30 June 2023, the group
entered into a share purchase agreement for
the disposal of 80% of the issued share capital
of Morrison Securities Pty Limited (‘Morrison’), a
100% controlled entity of Sequoia Financial
Group.
The executed sale agreement included the
disposal of the issued share capital in two
tranches:
— a first tranche as at 6 June 2023 of 50.1% for
consideration of $25.5m in cash; and
— a second tranche of 29.9% for consideration
of $15.0m in cash by 31 August 2023.
During the transition period from 6 June 2023
until fulfilment of tranche 2, Sequoia Financial
Group retained specific roles and
responsibilities with respect to the management
and control of Morrison.
Following fulfilment of the settlement terms, a
net gain on disposal of $27.0m was recognised
in the year to 30 June 2024, with Morrison
disclosed as a ‘discontinued operation’ as per
AASB 5 Non-current Assets Held for Sale and
Discontinued Operations.
Morrison was deconsolidated from the Group
on 31 August 2023 and based on the remaining
20% shareholding and significant influence over
Morrison in accordance with AASB 128
Investment in Associates, the fair value of the
investment was determined and recognised on
31 August 2023.
This is a key audit matter due to the material
nature of the transaction and the accounting
judgements required by the Group including
assessing its control and significant influence of
Morrison as at 30 June 2024.
How our audit addressed the key
audit matter
Our audit procedures included:
— Reviewing the terms and conditions
of the Sale Agreement between
Sequoia Financial Group and the
buyer;
— Agreeing the tranche 2 cash
proceeds received and transfer of
the issued 80% share capital to the
buyer to supporting evidence;
— Agreeing the net gain of $27.0m to
underlying records including
carrying value of Morrison net
assets as at 31 August 2023;
— Assessing the accuracy of the
values presented as discontinued
operations in accordance with
AASB 5 of the Morrison entity
during the period;
— Assessing that significant influence
in Morrison is maintained by
Sequoia Financial Group Limited as
at 30 June 2024;
— Verifying the fair value of the
investment in Morrison as at 31
August 2023, and the movement to
30 June 2024 being accounted for
under the equity method of
accounting;
We assessed the reasonableness of
the note disclosures with respect to
AASB 5 Non-current Assets Held for
Sale and Discontinued Operations and
AASB 128 Investment in associates.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
83
Independent auditor’s report to the members
of Sequoia Financial Group Limited
REVENUE
RECOGNITION
FOR SEQUOIA
SPECIALIST
INVESTMENTS
PRODUCTS
Area of focus
(refer also to notes 2, 5, 25 & 26)
The Sequoia Specialist Investments (SSI)
entity operating in the Sequoia Equity
Markets Group segment represents a portion
of the revenues and profitability of the
Group. SSI earns revenue by issuing
structured financial products principally
being commodities, foreign exchange and
equities. SSI effectively on-sells the financial
exposure it has with its clients to Tier 1
investment banks with derivative contracts
that completely match that derivative
exposure.
The revenue margin it earns from this
arrangement is priced separately and is
deferred (together with direct costs) on a
straight-line basis over the course of each
contract on a gross basis in the financial
statements (deferred costs and deferred
revenue). The derivative positions are held
at fair value on the statement of financial
position.
The key risks for this arrangement include
the following matters:
— The risk that client-driven derivative
exposures are not matched 1-for-1 with
wholesale contracts;
— The risk of credit default by the
investment banks providing wholesale
derivative hedge positions; and
— The potential for revenue to be
recognised in advance of the services
provided to the client, including other
revenues related with SSI including non-
refundable application fees, which are
earned up-front and at-risk coupon fees,
which are earned at the close of each
contract.
This matter was considered a key audit
matter due to the significance of the balance
and the complexity of contractual
arrangements.
How our audit addressed the key
audit matter
Our audit procedures included:
— For a sample of current year issued
structured products, we agreed the
terms and conditions, including but not
limited to, interest rates, notional
hedged units, product maturity, trade
dates and hedge premiums paid to
supporting documents, including
Product Disclosure Statements, Market-
to-Market (MTM) valuations, Market
registry allotment reports and bank
statements to agree monetary amounts
received and paid.
— We confirmed the valuations of the
derivative financial instruments at year
end through to supporting valuations
obtained directly from relevant
investment banks.
— Performed an assessment for the
appropriateness of management’s
product model to recognise deferral and
recognition of revenue and costs;
— An assessment of the credit
worthiness of the investment banks;
— We tested a sample of application
fees and coupon fees and vouched that
they were accrued to the appropriate
accounting period; and
— We tested the reasonableness of the
current and non-current classification of
deferred revenue and deferred costs to
underlying support.
We assessed the reasonableness of the
Group’s financial statement disclosures
in relation to revenue recognition and
reported segments in accordance with
AASB 8 Operating Segments.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
84
Independent auditor’s report to the members
of Sequoia Financial Group Limited
ASSESSMENT
OF CARRYING
VALUE OF
GOODWILL
AND
INTANGIBLE
ASSETS
Area of focus
(refer also to notes 2, 3 & 15)
The Group’s non-current assets include a
significant carrying value attributed to
goodwill and intangible assets, the majority
of which have originated from acquisitions.
There is a risk that the entities in the Group
may not trade in line with financial forecasts,
resulting in the carrying amount of goodwill
and intangible assets exceeding the
recoverable amount and therefore requiring
impairment.
As required by Accounting Standards,
goodwill and indefinite life intangibles are
tested for impairment at least annually, with
the recoverable amounts of the identified
four cash generating units (CGUs) assessed
in accordance with AASB 136 Impairment of
Assets. These recoverable amounts used a
discounted cash flow model to estimate the
value-in-use of the CGUs. The forecasts
used to measure the value-in-use required
management and the Directors to make
judgements which existed as at 30 June
2024 over certain key inputs, for example
but not limited to revenue growth, discount
rates applied, long term growth rates and
inflation rates.
Following assessment of the CGUs
recoverable amounts, the Group recorded a
total impairment charge of $6.4 million in
respect of excess carrying value recognised
against goodwill specific to two CGUs, being
Sequoia Direct Investment Group and
Sequoia Equity Markets Group.
Overall due to the high level of judgement
involved, and the material carrying amounts
involved, we determined that this is a key
judgemental area that our audit concentrated
on.
How our audit addressed the key
audit matter
Our audit procedures included:
— Assessment of the Group’s
determination of CGUs. This included
reviewing internal management
reporting, comparison to our
knowledge and understanding of
Group’s operations and confirming
CGUs are no larger than operating
segments;
— A detailed evaluation of the Group’s
budgeting procedures upon which the
forecasts are based and testing the
principles and enquiries of management
to consider the reasonableness of the
discounted future cash flow models;
— Testing the mathematical accuracy of
the calculation derived from each cash
flow forecast model and we assessed
key inputs in the calculations such as
revenue growth, discount rates and
working capital assumptions, by
reference to the Board approved
forecasts, data external to the
Group and our own views;
— Performing an assessment
surrounding the applicable discount rate
and other key input assumptions used
in measuring the value-in use
calculations; and
— Performing sensitivity analysis in
respect of the key assumptions noted
above to ascertain the extent of
changes in those assumptions which
would materially impact the recoverable
amount of the CGUs.
We assessed the appropriateness of
the Group’s financial reporting
disclosures in relation to the impairment
testing approach and input
assumptions.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
85
Independent auditor’s report to the members
of Sequoia Financial Group Limited
Other information
The directors are responsible for the other information. The other information comprises the information
included in the Group’s annual report for the year ended 30 June 2024, but does not include the financial
report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001; and
— the consolidated entity disclosure statement that is true and correct in accordance with the Corporations
Act 2001, and
— for such internal control as the directors determine is necessary to enable the preparation of:
— the financial report (other than the consolidated entity disclosure statement) that gives a true and fair
view and is free from material misstatement, whether due to fraud or error; and
— the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether
due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
86
Independent auditor’s report to the members
of Sequoia Financial Group Limited
Report on the Remuneration Report
Our opinion on the Remuneration Report
In our opinion, the Remuneration Report of Sequoia Financial Group Limited, for the year ended 30 June
2024, complies with section 300A of the Corporations Act 2001.
What was audited?
We have audited the Remuneration Report included in pages 15 to 20 of the directors’ report for the year
ended 30 June 2024.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the Remuneration
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing
Standards.
Yours faithfully
William Buck Audit (Vic) Pty Ltd
ABN 59 116 151 136
R. P. Burt
Director
Melbourne, 26 August 2024
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
87
Independent auditor’s report to the members
of Sequoia Financial Group Limited
In accordance with the ASX listing rule 4.10, the Company provides the following information to
shareholders not disclosed elsewhere in this Annual Report. The information is current as at 14 August
2024 (‘reporting date’).
DISTRIBUTION OF EQUITABLE SECURITIES
Analysis of number of equitable security holders by size of holding:
Ordinary shares
Number
of holders
% of total
shares issued
1 to 1,000
84
0.03
1,001 to 5,000
130
0.28
5,001 to 10,000
65
0.40
10,001 to 100,000
220
6.99
100,001 and over
134
92.30
633
100.00
The number of holders of less than a marketable parcel of ordinary shares as at the
reporting date (less than $500, based on the share price of $0.415) is:
90
0.03
VOTING RIGHTS
The only class of equity securities on issue in the Company that carries voting rights is ordinary shares.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
88
Shareholder information
EQUITY SECURITY HOLDERS
Twenty largest quoted equity security holders
The Company has only one class of quoted securities, being ordinary shares. The names of the twenty
largest security holders of quoted equity securities are listed below:
Ordinary shares
Number held
% of total
shares issued
UNRANDOM PTY LTD (UNRANDOM A/C)
10,000,000
7.87
MR GARRY CROLE
9,215,635
7.26
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
8,611,778
6.78
COJONES PTY LTD (JONES FAMILY NO 2 A/C)
6,638,972
5.23
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
6,456,447
5.08
CITICORP NOMINEES PTY LIMITED
4,374,052
3.44
TOCLO INVESTMENTS PTY LTD (TLC INVESTMENT A/C)
3,564,894
2.81
SANDHURST TRUSTEES LTD (JMFG CONSOL A/C)
3,022,861
2.38
VONETTA PTY LTD (TRBC S/F A/C)
2,240,000
1.76
COJONES PTY LTD (JONES FAMILY NO 2 A/C)
2,160,091
1.70
DMX CAPITAL PARTNERS LIMITED
2,100,000
1.65
MR NEIL CLIFFORD DUNCAN
1,947,472
1.53
BNP PARIBAS NOMS PTY LTD
1,934,328
1.52
BNP PARIBAS NOMINEES PTY LTD (IB AU NOMS RETAILCLIENT)
1,830,048
1.44
VANWARD INVESTMENTS LIMITED
1,808,561
1.42
Mr PETER STIRLING + Mrs ROS STIRLING
1,800,000
1.42
TIBARRUM PTY LTD (PAUL ROBINSON FAM S/F A/C)
1,698,000
1.34
NETWEALTH INVESTMENTS LIMITED (SUPER SERVICES A/C)
1,605,247
1.26
Mr ANTHONY CHRISTOPHER JONES
1,549,952
1.22
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
1,518,131
1.20
74,076,469
58.31
SUBSTANTIAL HOLDERS
As at the reporting date, the names of the substantial holders in the Company as disclosed in the
substantial holding notices given to the Company are as follows:
Number of
ordinary
shares
disclosed
Associated holders: Anthony Christopher Jones, Tarakita Pty Ltd, Cojones Pty Ltd, Toclo Investments Pty Ltd,
Vonetta Pty Ltd, Attenov Pty Ltd (Notice dated 05/06/2024)
17,022,156
Mr Garry Crole (Notice dated 04/11/2022)
11,401,500
Acorn Capital Ltd (Notice dated 26/07/2018)
10,421,640
DMX Asset Management Ltd (Notice dated 26/07/2024)
6,566,657
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
89
Shareholder information
OTHER INFORMATION
On 24 May 2024, the Company extended the on-market buy-back to 23 May 2025.
There are no issues of securities approved for the purpose of item 7 of section 611 of the Corporations
Act, which have not yet been completed.
No securities were purchased on-market during the reporting period under or for the purposes of an
employee incentive scheme or to satisfy the entitlements of the holders of options or other rights to
acquire securities granted under an employee incentive scheme.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
90
Shareholder information
Company Secretaries
Lizzie Tan
Sally McDow
Notice of annual
general meeting
The Company advises that its Annual General Meeting will be held on
or around 21 November 2024. The time and other details relating to
the meeting will be advised in the Notice of Meeting to be sent to all
shareholders and released to the ASX immediately after dispatch. In
accordance with the ASX Listing Rules, valid nominations for the position
of Director are required to be lodged at the registered office of the
Company by 5:00pm (AEST) on 30 October 2024.
Registered office
Suite 7.01, Level 7
1 Castlereagh Street
Sydney NSW 2000
Telephone: + 61 2 8114 2222
Facsimile: + 61 2 8114 2200
Principal place of business
Level 8
525 Flinders Street
Melbourne VIC 3000
Share registry
Registry Direct
Level 6
2 Russell Street
Melbourne VIC 3000
Telephone: 1300 556 635
Facsimile: + 61 3 9111 5652
Auditor
William Buck
Level 20
181 William Street
Melbourne VIC 3000
Directors
Garry Crole
Mike Ryan
Charles Sweeney
Kevin Pattison
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
91
Corporate directory
Bankers
Westpac Australia Bank
Royal Exchange, Cnr Pitt & Bridge Streets
Sydney NSW 2000
Maldon & District Community Bank® Branch of Bendigo Bank
81 High Street
Maldon VIC 3463
Macquarie Bank Limited
Level 32, South Tower
80 Collins Street
Melbourne VIC 3000
Australia and New Zealand Banking Group Limited
388 Collins Street
Melbourne VIC 3000
Stock exchange listing
Sequoia Financial Group Limited shares are listed on the Australian
Securities Exchange (ASX code: SEQ)
Website
www.sequoia.com.au
Corporate Governance
Statement
The Board of Directors of Sequoia Financial Group Limited is committed
to maintaining high standards of Corporate Governance. This Corporate
Governance Statement discloses the extent to which the Company has
followed the 4th Edition of the ASX Corporate Governance Council’s
Corporate Governance Principles and Recommendations (‘ASX
Principles and Recommendations’).
The Corporate Governance Statement has been adopted by the Board
and is current as at 26 August 2024. In accordance with ASX Listing riles
4.10.3 and 4.7.4, the corporate governance statement will be available
for review on the Company’s website, www.sequoia.com.au/about-
sequoia/corporate-governance/, and will be lodged together with an
Appendix 4G with the ASX at the same time that this Annual Report is
lodged with the ASX.
SEQUOIA FINANCIAL GROUP LIMITED ANNUAL REPORT — 30 JUNE 2 0 24
92
Corporate directory