Companies  

Big hike in partners and profits for True Potential

The senior partner of the Newcastle upon Tyne-based company was speaking as True Potential released its interim results for last year. He said much of the group’s positive results had been driven by an increase in wealth management partner numbers, which rose by 255 per cent on 2012’s figures to 416.

The results revealed an increase in net profits from £3.6m in 2012 to £5.3m in 2013, while turnover rose by 112 per cent to £27.5m. Assets under management on its wealth platform reached £1.9bn, following an increase of £1bn during 2013. They are expected to top the £2bn within the next month.

Last year also saw the firm roll out version six of its integrated platform, bringing together True Potential’s back-office system, its wealth platform, and client servicing tools, including its client websites.

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The firm also added 30 new staff at its head office to service its partners and directly authorised firms.

Mr Johnson said: “The continued success of the group is due to this technology-based business model which has offered advisers a way of working effectively, efficiently and in a fully-compliant way, post-RDR.

“The FCA wants to see well-organised firms with a clear value proposition for clients. Our technology offers a solution to advisers that enables them to achieve this while still working efficiently and profitably.”

He added that True Potential Adviser Services, the firm’s support service provider, had also performed strongly. Mr Johnson said: “Although we have not actively recruited in this area during 2013, the firms have been performing very well.

“The number of firms working with us has remained constant, and growing this area of the business is something that we are looking to prioritise in 2014.”

Adviser View

Mark Brookes, proprietor of Staffordshire-based IFA MRB Financial, said: “I use True Potential’s back-office systems and know that managing partner David Harrison runs a tight ship, so these results don’t come as a surprise to me. The platform and back-office systems are very useful.”