Adviser network Intrinsic Financial Services has reported a pre-tax profit for 2012 of £24.3m, a turnaround of close to £27m after it posted a pre-tax loss of £2.5m in 2011.
The Swindon-based network’s reports and accounts, published today (8 May), revealed the figure, which comes off the back of a restructuring undertaken by the business, was driven in part by the waiver of preference share dividends.
The business bought the preference shares held by Lloyds Banking Group using cash generated from profits, and Sanlam, Friends Life and Management have waived all preference share accrued dividends up to the end of 2011, worth about £20m.
Last year, Intrinsic said that it expects to post a pre-tax profit of between £25m and £30m for the 2012 financial year as a result of its restructuring
The number of advisers within the group increased from 1,666 to 2,035 during 2012. Turnover increased from £98m to £121m, and funds under management in the group’s Cirilium funds increased by 23 per cent to stand at £870m.
Richard Freeman, chief executive, said: “To deliver double-digit growth against every key measure has been an outstanding achievement for Intrinsic.
“Furthermore, we delivered these results whilst preparing the business for the impact of the Retail Distribution Review. We invested significant resources in supporting our financial advisers, who showed tremendous resilience to increase production levels whilst obtaining the qualifications and transitioning their businesses.
“The precise impact of RDR remains uncertain and we continue to monitor our progress closely. However, we have started 2013 very brightly with turnover levels well ahead of the same period last year. We remain extremely confident that our business will continue to succeed.”
