Broker Canaccord Genuity Australia’s revenue lifts to three-year high ahead of Wilsons Advisory speculation

Stockbroker and wealth manager Canaccord Genuity has lifted revenue to a three-year high as it reportedly mulls another expansion with the potential purchase of a big slice of Wilsons Advisory. The Canadian-controlled group, which has strengthened its foothold on both east and west coast markets in the past five years, has revealed a 13 per cent increase in revenue to $198.8 million for the year to March 31 off the back of its wealth management and brokerage businesses. However, the revenue growth - turnover was the highest since 2022 - again came at a cost to the bottomline as Canaccord increased rewards to its expanding workforce. Filings for Canaccord Financial Group (Australia) show net profit for the year fell 11 per cent to $16.5m after the group accounted for a 21 per cent jump in employment costs that included a $7m increase in bonuses to $43.4m. “Increased employment costs reflect higher commissions commensurate with revenue growth, as well as increased headcount,” the company, chaired by Perth-based Michael Manford, told The West Australian. Staff numbers in the wealth management arm rose 10 per cent over the year, while the capital markets workforce expanded 11 per cent as total job numbers at Canaccord grew to 358. Canaccord, which is owned by Canada’s Canaccord Genuity and its Australian workforce, also called out higher occupancy costs due to office upgrades in Sydney and Adelaide to accommodate more advisers and increased travel and entertainment costs as it stepped up business development. The reduced profit reined in dividends, with the group returning $16.9m to its shareholders last month, down from the $25.3m paid a year earlier. Canaccord did not address the speculation about Wilsons Advisory following a report two weeks ago it was in talks to acquire a significant stake in the rival. The group said the latest results reflected “strong revenue growth attributable to continued expansion of its wealth platform and strong investment banking revenue in capital markets, further consolidating its position as a leading full-service financial services firm in Australia”. Wealth management led the way, with recurring income leaping 35 per cent to $48m, or 45 per cent of total wealth revenue. Fee-based wealth assets under management rose 29 per cent to $9.4 billion. Brokerage revenue improved 13 per cent to 46.9 per cent, buoyed by record equity markets over the 12-month period, though US President Donald Trump’s tariffs sent stocks tumbling in the last two months before Canaccord’s balance date. However, fees from its mainstay corporate dealmaking dipped 7 per cent to $88.8m, reflecting subdued investor appetite for some mining commodities across its focus markets of small and mid-cap stocks. However, Canaccord still raised more than $2b for client companies across mining, technology and healthcare. Its said the firm was off to “a strong start” in transactions for the new financial year, holding third position in Dealogic’s equity capital market rankings. It has recently taken lead manager and bookrunner roles on major raisings including Firefly Metals’ $100 million equity placement, Greatland Gold’s $490 million float and Turaco Gold’s $60 million raising.