National advisory group Perspective is set to complete an acquisition in the next few weeks, with a further five in the pipeline, according to its group operations director.
At this stage, David Hesketh could give no further details of the deals, but told FTAdviser that it was a direct result of the introduction of new terms of acquisition for advisers.
For the last 12 months the firm has paid members six times the firm’s pre-tax profit at the point when the firm itself is sold, after paying three times profits upfront, with further payments dependent on adviser performance over two years.
“We continue to see great demand for financial advice with the complexities in the pension market and in these turbulent market conditions,” Mr Hesketh commented, adding that Perspective is attracting advisers to the group across its various offices.
The firm’s 2014 figures detail that its average headcount dropped 15 per cent from 225 to 191, while total staff costs fell 22 per cent from £10m in 2013 to £7.8m last year.
“There has been a focus on cost control and integration which has led to a reduction in head count,” explained Mr Hesketh, who confirmed that they have 58 advisers, a figure which has remained relatively stable, while there are plans to grow that number in the near future.
Following a £5m loss during 2013, Perspective returned to pre-tax profit in 2014, making £493,383 up until the end of last year.
Mr Hesketh said that the firm incurred “significant costs” associated with a restructure during 2013 which was finally completed in June 2014.
“The restructure has been a fantastic success and we now have a solid foundation for further growth,” he noted.
A more prudent accounting policy was also adopted in 2013 which led to a one-off write-off. Overall administrative expenses were also down 18 per cent from £19.1m to £15.7m, while turnover rose from £16.9m to £17.1m.
peter.walker@ft.com
