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Foster Denovo swings into profit

Foster Denovo swings into profit

Foster Denovo has swung into profit on the back of the growth of its advice business.

The firm has reported earnings before interest, tax, depreciation and amortisation of £148,000 for 2017 compared with a loss of £329,000 for the previous year.

Revenues increased by 9 per cent over year, reaching £18.5m, while Sequel Investments, Foster Denovo's fund management arm, saw its assets increase by 20 per cent to £448m.

Revenues in the advice arm of the business increased by 7 per cent while revenues in Sequel increased by 36 per cent, leading to profits of £987,000.

Over the course of 2015 Foster Denovo saw a number of advisers leave the firm, hitting its profits, but it has since gone on a recruitment drive bringing its adviser numbers up to 80.

Roger Brosch, chief executive of Foster Denovo, said: "We have long believed that investing in our business and our people would help our journey back to profitability. 

"2017 was a pivotal year in the group’s journey. We appointed a new chairman and strengthened our leadership team with the appointment of an experienced finance director and a senior M&A specialist. 

"Our existing private client partners increased their productivity significantly, 11 new partners joined the company and we completed on a key acquisition. 2018 is no different and continues to be an exciting time.

"We are in advanced discussions with a number of potential acquisitions, the recruitment of advisers remains strong and we continue to invest for future growth."

During the year Foster Denovo bought TEBC Limited, an employee benefits consultancy based in Marlow, and invested in its infrastructure.

damian.fantato@ft.com