Financial advisory and insurance group SFG Australia says acquisitions and increased income from insurance and mortgage broking fees have helped improve annual returns.

The fees grew 0.4% to $15.6 million in the year to June 30, representing 12% of net operating revenue.

Financial advice fees increased 2.5% to $65.9 million – 49% of net operating revenue.

A growth strategy, increased client confidence and improved equity markets were major drivers, SFG says.

Annual net operating revenue was $134.3 million for the year, up 14% on 2011/12.

Underlying net profit after tax also grew 14%, to $32.5 million. Operating earnings before interest, tax, depreciation and amortisation increased 15% to $48.1 million.

“The overall improvement in market conditions against [the previous] year had a welcome positive impact on our clients’ portfolio balances and assisted in the group’s revenue growth,” MD Tony Fenning said.

“Client confidence is returning, albeit slowly. We look forward to seeing continued momentum [this] fiscal year.”

SFG was created from the merger of Snowball and Shadforth in 2011. Last year it acquired Perth-based Parkside Insurance Brokers, owned by veteran broker John Deykin.

Acquisitions made in 2011/12, including Life Financial Services in Ballarat, also aided results, SFG says.

Major acquisitions such as Lachlan Partners and “modest but improving” financial markets were key contributors.

SFG acquired Lachlan Partners – an integrated accounting, tax, business and self-managed super fund company – in March for $32.2 million.

“Lachlan Partners brings the systems and competencies to build out our accounting strategy and expand an integrated and seamless combined service offering for self-managed super funds and high-net-worth tax needs,” Mr Fenning said.