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Ascot Lloyd falls into the red

Ascot Lloyd falls into the red

Ascot Lloyd fell into the red during 2017, posting an operating loss of £1.5m.

The financial advice business saw turnover fall from £18.4m in 2016 to £18m in the following year, while expenses increased from £17.9m to £19.6m.

This meant Ascot Lloyd posted total losses of £1.58m for 2017, compared with a profit of £470,617 for the previous year.

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The current company was formed after the merger between Ascot Lloyd and Bellpenny last year and these figures relate to the company before the merger.

Taking into account the merged business, Ascot Lloyd said it made revenues of £31.5 during 2017, increased from £17.2m for the previous year, and earnings before interest, tax, depreciation and amortisation of £3.7m, up from £300,000.

During 2017 Ascot Lloyd made four acquisitions, which increased the company's revenue by £14.5m and profits by £600,000.

Nigel Stockton, chief executive of Ascot Lloyd, said the fall in revenue was due to changes in the way this was calculated, while the loss was due to increased redundancy costs and investment in subsidiary Harvard Financial Management.

Mr Stockton said: "2017 was a year of growth and delivery for Ascot Lloyd, and this momentum has continued well into the current year.

"The acquisitions, and their successful integration, contributed materially to our performance and our strong trading position means we are able to continue to pursue attractive inorganic growth opportunities.

"This year has seen us successfully build on the performance of 2017, including the move to become a single, fully independent, advice firm under the unified Ascot Lloyd brand. We are excited about the future, and the significant growth potential we see for the business."

Ascot Lloyd now has more than £6bn in funds under influence, 80 advisers and more than 30,000 clients.

Earlier this year the company, originally called Ascot Lloyd Bellpenny, rebranded as simply Ascot Lloyd and became fully independent.

It is backed by private equity firm Oaktree Capital Management.