Paradigm Partner’s pre-tax profits have near-doubled compared to last year’s figures, largely due to offloading its network late in 2012.
According to the firm’s annual results for the 12 months to April 2014, the IFA group posted a pre-tax profit of £1.5m in April 2013, increasing to £2.9m a year later.
The accounts said this a result of the sale of its network Paradigm Financial Advisers to Caerus Capital Group late in 2012.
At the time Paradigm said the decision reflected a desire by senior management to concentrate on supporting the group’s “successful and profitable” directly authorised proposition Paradigm Partners, as well as its other growing interests.
These include Paradigm Pensions, Paradigm Mortgages, recently-launched corporate wrap platform Amber, and Tatton, the group’s new investment management business.
Furthermore, its losses have improved, posting a loss of £223,097 at the end of April last year, compared to £1.2m for the 12 months to the end of April 2013.
A £130,000 provision set aside as liabilities for an ongoing case file investigation in 2013 was also written off.
The firm said in its account statement: “The members are confident that the financial performance of the business will continue to improve further following the disposal of PFA during the year, the continued strong performance within the LLP during the current year and the recurring nature of much of the group’s revenue.”