Seventy-two per cent of advisers expect revenue to grow over 10 per cent during the next 12 months according to research from CoreData, with 25 per cent believing revenue will increase by more than 20 per cent.

There is also another 21 per cent surveyed that believed revenue will not materially change during the year.

Simon Hoyle, head of market insights for CoreData, tells Professional Planner the percentage of advisers that expect revenue to decline is “tiny”.

“That’s 93 per cent of advisers who are either looking at static or growing revenue,” Hoyle says.

As the number of licensed advisers has declined – the cohort is now below 17,300 –  advisers that remain have been able to take on a broader swathe of potential clients and attendant revenue.

“While there’s been a lot of pain for a significant number of advisers who have left the industry and that has led to the closure of businesses they’ve been running, the businesses that have remained are generally starting to perform well,” Hoyle says.

He cites this as one of the reasons the proportion of advisers who expect revenue to grow has increased over the last couple of years, as noted in the chart below from CoreData.

“Practices that were either borderline or perhaps even non-viable tend to be the ones that have dropped off the radar and don’t come through on the results,” Hoyle explains.

Drivers of growth

The research found the overwhelming factor cited for growth is expected to be the organic onboarding of clients.

“90 per cent of practices think that is going to drive revenue 12 months ahead,” Hoyle says. “But there’s also a proportion – 53 per cent of practices – that think re-pricing their current advice offer is also going to drive growth.”

Hoyle says onboarding new clients will become the “engine room” of new growth.

“[Practices] talk less about practice efficiency and process efficiency,” Hoyle says. “Their response to driving growth seems to be doing more of the same.