IFA firm Positive Solutions has published its annual financial figures and accounts to reveal pre-tax operating profit in 2006 passed the £10m mark.
The figures show annual turnover increased by 33% to £98m, while operating profit rose by 36% from £7.9m to £10.7m, which Neil Johnson, chief executive of the firm, says is down to the “scalability of our business model”.
In addition, the results reveal the number of IFA partners in the firm increased by 15% to 1,510, meaning turnover for each partner exceeded £70,000, while Positive Solutions says it paid out £11.5m to its partners through its Prophitshare scheme.
And the company, owned by Aegon, says it is in a strong position for the long-term as at the end of 2006 it had £21.4m in cash, with no borrowing, with an associated capital adequacy surplus of more than £12m.
Johnson says: “The accounts show we achieved record turnover and profit at a time when many others are struggling to achieve growth and the market has suffered continued fragmentation and some high profile collapses.”
Positive Solutions also says 2007 has shown a strong first quarter business performance, with continued high levels of recruitment which have taken adviser numbers above 1,600.
While recent developments by the company include the extension of its Partnership incentive scheme; the introduction of a 0% retention rate for advisers issuing more than £150,000 business and the proposed demerger of its technology arm into an independent company True Potential.
Johnson adds: “We have no intention of resting on our laurels. We remain committed to improving the Positive Solutions offer and putting in place innovative new ways of building value for our current partners and those wishing to be part of the firm.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7034 2681 or email [email protected]IFAonline
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