OneVue's Connie Mckeage (source: YouTube)

ASX-listed investment fund and platform services business, OneVue, is now the proud owner of advice licensee, Madison Financial Group, thanks to the ongoing administration process of Madison’s former owner, Sargon Capital.

Madison ended up in OneVue’s hands as part of the consideration of a $31 million deferred payment OneVue agreed to when it previously sold its Trustee Services Business to Sargon.

Sargon was due to complete this deferred payment by May 29 this year, but on January 29 administrators were appointed to the business.

It’s not clear from the ASX disclosures what portion of the $31 million Sargon receivable owed to OneVue the Madison deal represents, nor is it clear whether OneVue plans to continue to own Madison for the medium to long term or whether it plans to sell the business. OneVue’s managing director Connie Mckeage was contacted by Professional Planner for comment on Friday but had not responded by press time.

Exactly one week after OneVue went into a trading halt, and eight days after it was revealed receivers had been appointed to Sargon – the diversified trustee business founded and led by Philip Kingston – Mckeage confirmed Madison would come under OneVue’s ownership.

“The Madison Group is an important client of OneVue,” Mckeage said. “We have known most of the Madison advisers for many years and we care about them and their business,” Mckeage said in a statement to the ASX.

Way back on December 9 last year, Sargon announced that it planned to re-brand Madison Financial to Sargon Adviser Services; speculation was already swirling in industry circles at this time about Sargon’s financial position.

In its latest ASX disclosure, OneVue’s Mckeage confirmed the re-branding of Madison would cease and that advisers would continue to operate under the previously discarded name.

Madison had 103 adviser representatives mid last year, according to Professional Planner’s 2019 Licensee Owners list.

Shares in OneVue dropped more than 11 per cent since the company came out of its trading halt on February 3 through to the close of trading on Friday.

Cash position, buyback

Since it resumed trading on February 3, OneVue has informed the market that it will continue with its previously planned share buyback, which it said at the end of January would be funded by the Sargon receivable.

OneVue’s chairman Ron Dewhurst noted that the foreshadowed dividend to shareholders resulting from the buyback remains subject to the final principal repayment of the outstanding $31 million Sargon receivable, although Dewhurst didn’t specify in his latest ASX disclosures how the buyback would be funded. When the company notified the market at the end of January it specified the share buyback would represent up to 10 per cent of its issued capital and would commence no later than February 18.

OneVue had $10.2 million of net cash and cash equivalents on its balance sheet as at June 30 last year, down from $13.2 at the same time the previous year, according to the company’s most recent annual report.

“OneVue has been dealing with Sargon matters for an extended period of time and without access to the $31 million, OneVue’s chairman, Ron Dewhurst said in an ASX statement.

The Sargon process has also resulted in a close to 20 per cent stake (worth $4.6 million) in ASX-listed integrated financial services company, Sequoia Financial Group, one of the assets under OneVue’s secured interest, finding its way into the hands of the Sargon receivers, OneVue also disclosed on Friday.

Smith is the editor of Professional Planner’s print and digital platforms. He is an experienced financial journalist, editor and multimedia producer who has held senior editorial positions both in mainstream press and trade media.
Leave a comment