Loss for Perspective despite sales growth

PERSPECTIVE Financial Group has seen sales rise by 56% but costs associated with acquisitions pushed the group to a full-year loss last year.

Figures released by the business show revenues rose to £16.3m (2010: £11.5m) but a £1m accounting write-down and £3m amortisation coast left the business with a pre-tax loss of £1.9m, down from a profit of £113,000 last time.

The Wilmslow-based company is a consolidation vehicle for practices of Independent Financial Advisors. It now has 24 offices employing 230 people and funds under management of £2.2bn, up from £1.7bn.

The company said earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by 65% to £4.3m.

Managing director Damian Keeling said: “The profit before tax was impacted by a £1m exceptional accounting write-down and £3m of amortisation, which do not affect trading. We are particularly pleased to record a substantial increase in EBITDA, and in the EBITDA margin, which are the group’s core measures of performance.

“We have achieved significant progress in organic growth, and the group continues to acquire excellent practices that perform well within our environment. The group is ready for the Retail Distribution Review (RDR) changeover on the January 1, by when all advisers will be fully qualified and authorised.”

He added: “The group expects RDR to lead to many more opportunities as its offering of unbiased, top-quality advice and very high service standards are exactly what the regulatory changes were designed to encourage.”