Sesame reports £2.5m loss as RDR cost takes toll
Loss reported for 2011 does not reflect performance of Sesame Bankhall Group as a whole, chairman argues.
Sesame’s investment in its post-RDR strategy has hit company profits, with the network reporting a loss of £2.5m for 2011 compared to profit of £1.1m for the previous year.
However, despite the significant negative swing parent organisation Sesame Bankhall Group reported profits of £2.2m for the year.
Adviser numbers have also fallen slightly at Sesame, with designated investment advisers decreasing by 11 per cent and the mortgage and general insurance adviser pool shrinking by 4 per cent.
George Higginson, chief executive officer at Sesame Bankhall Group, said: “We have a clear vision of the future and the challenges facing advisers. As part of our long-term strategy and commitment, we have been investing millions of pounds to ensure firms are in a strong position post-RDR.
“We have been very clear and consistent from the outset that the delivery of our long-term strategy would impact on our short-term profitability. Our strategy is on track and is helping to put Sesame and its members in the strongest possible position going forward.”
Sesame used £7.4m to deal with complaints, down from £8.4m the previous year.
Company turnover for the year was £170.3m, up from £162.9m in 2010, an increase Sesame attributes to its new services.
The regulatory surplus fell £14.7m to £21.9m, which the company said is “a result of us settling historical debts across the group” and not connected to wider market factors.
In a statement concerning Sesame’s year-end results, the company argues that because it is part of Sesame Bankhall Group “it is not possible to obtain a complete picture of [the group] based on these individual reports”.