Openwork Holdings, parent company of adviser network Openwork, has posted an after-tax loss of £1.02m for 2013, compared with a loss of £1.61m the previous year.
The 55-page Directors’ Report and Financial Statements for the year ended 31 December 2013 for Openwork Holdings also revealed an operating profit of £1.66m for the year, up from £1.35m in 2012.
It showed profit before tax of £297,000 for 2013, down from £321,000 a year before.
Mary-Anne McIntyre, chief executive of Openwork, said that 2013 had been a year of “sweeping regulatory challenges for business delivering advice to customers” because of changes following the RDR, as well as the implementation of the mortgage market review in April.
But she added that the new rules around both Isas and pensions announced in the budget could benefit the network, saying: “The opportunity for Openwork – a professional, scaled group of advisers – to grow their individual businesses has never been greater, and we look forward to supporting them to do that.”
However, Openwork has pledged to commit funding to attract and develop the next generation of financial advisers through the launch of a training academy.
According to Ms McIntyre, the programme will take college or university graduates aged 19-27 to Level 3 or 4 within 12 months. Trainees in the first intake will be seeking to qualify as pensions and investments advisers, while those beginning in October will be studying for mortgage qualifications.
All successful participants will be guaranteed a job after qualification.
Openwork results, 2013 and 2012
| 2013 | 2012 | |
| Gross profit | £44.094m | £44.208m |
| Operating profit | £1.656m | £1.355m |
| Profit before tax | £297,000 | £321,000 |
| Loss for the year and total comprehensive income | £1.02m | £1.61m |
Source: Openwork Holdings Director’s Report and Financial Statements for the year Ended 31 December 2013
The news came as Moneygate Group, the parent company of Fairstone Financial Management and Marketstar Investment Management, revealed a post-tax loss of £1.386m for the year ended 31 December 2013, compared with 2012’s loss of £3.063m.
Chief executive Lee Hartley said: “Against the landscape of a revised regulatory framework, together with new legislation for retirement planning and an optimistic outlook for the UK economy, we believe that the group is in an advantageous position to deliver on our growth objectives for the benefit of all stakeholders.”
Earlier this year, Tenet Group posted a net profit of £300,000 for the 12 months to 30 September 2013, with chief executive Martin Greenwood saying: “The strong balance sheet, together with investment in people, practices and technology, gives Tenet a strong post-RDR market position into 2014.”
True Potential Group also released its results earlier in the year, announcing a net profit of £5.3m for the calendar year 2013.
Adviser view
Jason Witcombe, director of Evolve Financial Planning, said: “With the networks I am not personally convinced that the size of a business is relevant to how well it can react to pensions changes, for example.
“But the pensions changes will be good for the adviser industry. The reality is, the more confusion there is in consumers’ minds, the more work there will be for financial advisers.”
