The chief executive of PTFS, who was appointed to the post in February 2012, said the decisions had been robust and may have “drawn some negative criticism” from the industry, but he was confident they would continue to benefit the consumer.
Mr Wright said: “Our new focus on quality has been warmly welcomed by product providers, lenders and of course our advice members who have chosen to remain with our new, more efficient network.”
He also said the average productivity of each adviser had risen from £38,000 in 2011 to £44,000 in 2012.
As a result, he said, the network’s pre-tax profit rose from £1.2m to £11.1m.
He pointed to the additional cash injection of £12.6m from parent company LDC during the 2011/2012 tax year as proof of PTFS shareholder confidence.
PTFS 2012 report and accounts:
- Member firms fell to 576, a drop of 21 per cent on 2011, when the figure stood at 733.
- Turnover increased by 15.7% (2011: 6.3% drop)
- Turnover for year: £64.9m (2011: £56.1m)
The network’s strategic reviews had seen a number of casualties over the 18 months to date. Earlier this month, Jonathan White left as a result of the changes to the commercial team, and his role is not being replaced.
Dave Edwards, the former propositions manager, was appointed as head of member services and operations. In October 2012, PTFS announced 22 job losses and restructured the board to achieve a 25 per cent cost saving.