Sanlam UK was able to report a profit for 2014 because of the £10m sale of the group’s stake in Intrinsic Financial Services Limited.
Annual results for the group reveal profits before tax plummet last year fell by two thirds from £28.47m in 2013 to £9.43m in 2014.
The results state the group’s shareholding in Intrinsic was sold triggering the repayment of all loans and preference share dividends due to the company.
On top of this, a settlement amount of £10m was received that accounts for the profit in the company.
Bosses stated as Sanlam UK acts mainly as a strategic holding company for the group, it was not expected to make profits in this accounting period.
The company also received a dividend of £2.3m from Sanlam Life and Pensions UK Limited, a subsidiary of the company.
During 2014, Sanlam UK’s results revealed it bought shares in several companies including Sanlam Private Investments (UK) Holdings Limited at a cost of £690,352, Snalam FOUR Investment Holdings UK Limited for £6.42m and Nucleus Financial Group at a cost of £3.27m.
Sanlam’s 2013 profit came after the wealth managers sold their 21.6 per cent stake in actuarial consultants Punter Southall Group back to the principals and staff at the firm, as the firm focuses on its growth strategy in the wealth management space and targets further acquisitions.
Sanlam UK, the sole external investment partner in PSG since 2001, said it is only seeking now to “pursue investments congruent to and reflective of Sanlam’s UK business strategy”.
In particular, at the time of the sale, the firm said it was making “good progress” in developing a major retail wealth management presence in the UK.
emma.hughes@ft.com
