James Hay finally returns to net growth in Sipps

Results released to the stock exchange today show Saunderson House increased revenue in 2013 with 154 new client wins.

Assets under advice and administration stood at £19.7bn, compared with £18bn in 2012.

James Hay Partnership delivered £6.7m adjusted operating profit for 2013, down from £9m in 2012.

Revenue at the Sipp provider was marginally down on the previous year as the loss of revenue on maturing and expiring Sipps continued to outpace the timing of the revenue benefit of new business.

Revenue figures included interest earned on client cash held, which is subject to fluctuation as interest rates change.

This impact will vary, depending on where cash is deposited and the terms associated with each deposit, bosses admitted.

Bosses said adjusted operating profit was also impacted by continued investment in the business, which is an increasing focus for the group.

Total new self invested personal pension sales of 5,071 were recorded for 2013, which exceeded the original acquisition target of 4,000 Sipps a year by 2014 and the prior year’s total of 2,469.

This was the first year since IFG acquired the business that James Hay Partnership had net growth in the number of Sipps under administration.

Inflows for the year were £1.2bn, a 63 per cent increase on 2012.

Assets under administration have increased from £14bn to £15.3bn

IFG’s balance sheet for 2013 did not include the cash boost produced by the sale of IFA business IFG Financial Services, which was announced earlier this month.

IFG Financial Services, which consists of IFG Financial Services Ltd, DK Wild & Company Ltd, John Siddall Financial Services Ltd and Berkeley Jacobs Financial Services Ltd, is set to be sold to Ascot Lloyd Financial Services Ltd for an initial consideration of £3.5m, which will be paid on completion.

IFG could also receive an extra £5.6m in deferred consideration, dependent upon future revenue targets.