Your IndustryAug 11 2017

Succession sees losses deepen

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Succession sees losses deepen

Succession increased its losses during 2016 to £6m despite increasing turnover by 24 per cent.

The advice firm consolidator saw turnover increase to £36.3m and operating profit improve by 69 per cent to £2.3m.

But overall losses before tax were £6m, compared with losses of £4.5m in 2015.

According to Succession, the company’s performance is in line with its business plan.

The loss has been attributed to interest payable on financial instruments, bank loans and payment in kind notes for the purchase of subsidiary entities and financial services firms.

This morning (11 August) Succession also published its results for the first half of 2017, which showed its funds under management had risen to £5.6bn.

Ray Pierce, executive chairman of Succession, said: “With the support of our committed shareholders, we continue to execute our long-term strategy of creating the UK’s largest privately-owned wealth management business.

“Increased turnover and trading margins demonstrate the continued appeal of Succession’s unique proposition for clients, advisers and high performing IFA business owners, as the appetite for professional wealth planning advice and wealth management services increases.

“Previous years’ investment in building a sustainable business has resulted in an above 10 per cent increase in organic revenue growth as Succession continues to scale.”

Succession’s business plan involves buying 50 firms from its membership by the end of 2018.

It now has 143 financial advisers and this year so far it has bought nine firms while last year it bought 14.

During 2016 the company moved to a regional structure, creating nine regional hub offices.

Succession predicts the number of hubs will increase as the company increases its footprint across the UK.