Openwork made an operating profit of £1.7m last year, its second successive year in the black and a 20 per cent rise on 2012.
In 2012 the part Zurich-owned network posted an audited operating profit of £1.4m. The consecutive years of profitability follow a loss of £13.3m in 2011 and initial trading losses totalling £55m in the group’s first two years.
Mary-Anne McIntyre, Openwork’s chief executive, said: “In common with many advisory firms, we anticipated that the first full year following the introduction of the RDR would be difficult to navigate.
“For Openwork to have posted its second successive profit is therefore very satisfying, particularly given the continued capital investment we are making to our adviser systems.”
Speaking to FTAdviser, the group’s proposition and marketing director Philip Martin, said that over the last three years Openwork has invested heavily into building its own proprietary system to help support advisers and streamline their processes.
He also mentioned that adviser headcount had remained broadly static over 2013, following a modest decline in 2012 when adviser numbers fell from 2,261 to 2,114.
Last week the network agreed to take on up to 930 of MetLife’s advisers as part of a deal to provide it with an expanded nationwide presence from which a broader protection range can be distributed, which will now include MetLife accident protection products.
Mr Martin also noted Openwork advisers were embracing the use of platforms, with £1.5bn of clients’ money investing onto wraps during the period.
In February Openwork launched a range of multi-asset model portfolios, comprising sector funds managed on a mandate basis by asset managers including Schroders, Jupiter and Threadneedle. This has led to almost £800m under management in the first eight months.
The group is owned by its advisers, with a 67.5 per cent share, 7.5 per cent by its employees and 25 per cent by Zurich Financial Services Group.
