CompaniesMar 2 2012

True Potential sees pre-tax profits leap to £2.3m

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In its annual results, it also revealed its turnover increased to £5.8m in 2011 from £4.1m in 2010.

David Harrison, managing director of True Potential, said the results were “particularly impressive” against a background of much uncertainty in the IFA arena during 2011, “where the Retail Distribution Review, management reshuffles and a distinct lack of profitability have depressed the industry, making True Potential an exception”.

In addition, the firm’s wealth platform, which launched in March 2011, posted a pre-tax profit of £3,520.

The platform currently operates exclusively for True Potential members.

True Potential claimed its now works with 20 per cent of the IFA industry, representing more than £200m of IFA turnover.

Mr Harrison said: “We’ve been working with our IFA firms to help them develop their business plans and have recently run a series of workshops around their unique value proposition. Both are these have been designed to help IFAs not only survive RDR, but thrive.

“With the change in power from provider to client, it’s important that IFAs and wealth managers can clearly state their value to the discerning client and we are pleased to be able to help. We have had very positive feedback on our efforts to date and this is reflected in our results.

“Our results have displayed a dramatic success throughout our short existence, with the wealth platform achieving profitability within just nine months of launch - a feat unheard of previously.

“This was realised whilst building the widest possible choice of mutual funds, shares, ETFs, investment trusts in the UK retail market, and providing tax treatments, known as tax wrappers, that are arguably the cheapest available.

“We plan to continue building on this momentum in 2012 by seeking out innovative ways to add value for both IFAs and their clients.”