Self-invested personal pension provider @SIPP has revealed a near four-fold increase in pre-tax profits for the year ending March 2017, jumping from £70,000 to £250,000.
During the same period, total revenues for @SIPP were £2.7m compared to £2.1m in March 2016. In addition to this, the business also increased its new customer numbers by 28 per cent.
@SIPP was formed in 2001 and currently provides a wide range of member-directed pension solutions to 2,700 clients. The Glasgow-based firm, which is privately owned, has £1bn of assets under administration, and also offers small self administered schemes (Sass).
Following the strategic acquisition of Essex-based Ssas firm, Alfa Trustees, in June 2016, the @Sipp now has an enhanced presence in the UK Ssas market, with that part of the business accounting for 10 per cent of overall revenue.
Commenting on the results, Eddie McGuire, managing director of @Sipp, said: “The substantial increase in our profits announced today demonstrates the strength and scale that we have built in recent years and we are confident this growth will continue.
"Our business is well capitalised and will, we believe, be one of a small number of profitable full Sipp providers in the UK market in the future.
"With robust revenues and lapse rates significantly below the industry average, we are well positioned to capitalise on the continued growth in today’s Sipp market fuelled by legacy defined contribution and defined benefit transfers and the broader pensions’ freedoms regime.”
The firm also recently unveiled its plans to develop in the south west of England, with the appointment of Lisa-Marie Finch to the position of business development manager. The newly created role will enable @SIPP to capitalise on growth opportunities within this region.
Also commenting on the results, chairman Colin Barral added: "As expected, this strong growth has led to several approaches from other market players but we remain committed to our strategy of organic growth supplemented by possible tactical acquisitions which we continue to monitor.”
Sipp firms appear to be reaping some of the rewards of the greater flexibility over 55s have to use their pensions how they wish, since pension freedoms were introduced in April 2015.
Rival AJ Bell reported new business inflows up by 68 per cent to £3.6bn for the six months to March 2017, up from £2.1bn in the prior year, explaining, "the advent of pension freedoms two years ago has led to growing demand for low cost and flexible SIPPs and income drawdown solutions."