Cavanagh to launch wealth management platform
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Cavanagh has announced plans to launch a wealth management platform as it reports a large increase in profits.
The IFA firm, which currently has 60 advisers, has announced profits before tax of £782,422 for the year ended December 31, 2009, compared to £207,763 for 2008.
As part of its results, the group says it has appointed SEI to help develop its own wealth management platform which it plans to launch in the second half of 2010. Chairman Paul Sinnett says:”We are confident that SEI will help us to remain truly independent when our consultants provide financial advice to their clients”.
Sinnett says all Cavanagh advisers are on target to meet the qualification requirements set out by the retail distribution review by the end of 2011, a year ahead of schedule. He says 55 per cent of the group’s income now comes from recurring income.
Cavanagh’s discretionary management service, Cavanagh Asset Management, currently has £136m of assets on the platform at the end of its first full year.
Earnings before interest, depreciation, amortisation, share based payment and tax increased 26 per cent from £1,248,000 to £1,572,000 while revenues dipped 8 per cent from £17.5m to £16.1m. The firm has also reduced its debt to £401,686, compared to £2,173,777 for 2008.
Chief executive Andrew Fay says the firm will consider appropriate targets for acquisition, although the recent economic climate has reduced opportunities.
He says: “2009 has seen Cavanagh continue to meet its aim to build an efficient and profitable model that delivers a high level service to our client base of private clients and Corporate firms. Our ability to manage the significant changes in market conditions has improved our trading performance quite significantly and at a time when we have also invested in the development of our future client proposition.”
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