Buyouts boost Perspective’s numbers

PERSPECTIVE Financial Group has announced a 73% increase in turnover to £13.3m after buying nine companies in 2010.

The business, which is owned by Mosaic Private Equity, also said that its earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 138% to £3.1m.

However, when these and other exceptionals such as the deal costs associated with acquisitions are factored in, the company made a pre-tax loss of £584,000.

Assets under management increased by 110% to £1.8bn.

The company is a consolidation vehicle which has been snapping up smaller practices of independent financial advice companies, offering help with compliance and training ahead of the new Retail Distribution Review and a profitable exit for many business owners.

It said that annualised results taking full-year figures from all acquired businesses into account would have led to turnover of £19.1m and EBITDA of £5.2m.

Managing director Damian Keeling said the results “show the solid foundations on which Perspective is built”.  

“Our philosophy of empowering and motivating our staff throughout the Group has led to record levels of income and profit, and to an industry-leading level of operating profitability.  

“We will continue our acquisition strategy, which is to only engage with RDR-ready firms with proven EBITDA, high quality compliance records and a strong management team who remain focused after acquisition.

“Nearly half of our acquisitions to date have successfully completed their earn-out periods and are contributing fully to the group’s growth and profitability.”

He added that Perspective’s strategy was to become the most profitable and the most compliant IFA group in the UK.

“We have achieved a superb result in 2010, are already improving on it throughout 2011 and look forward to further building on it over the next few years.”

By its year end, the Perspective had cash reserves of £6.05m and unused bank facilities of £3.5m.