Clarkson Hill posts £48k pre-tax profit
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Clarkson Hill has reported a pre-tax profit of £47,853 for the six months to June 30, 2010, a marked turnaround from the £178,379 pre-tax loss the company made last year.
In its half-yearly report, which cites both audited and unaudited figures, the national IFA says the discussions with the FSA about the company’s regulatory capital are still ongoing.
In July chief executive Ron Pritchard and managing director Mike Robinson lent the firm £588,000 to help it meet its capital requirements.
It emerged a few days later that those loans had not yet been approved by the FSA as being sufficient to bolster the company’s capital.
The Cambridge-based firm first revealed in July that it needed more capital having run up exceptional costs of £230,787 due to a regulatory review of its systems and controls last year.
It posted a pre-tax loss for 2009 of £636,699.
In the half-yearly report for 2010 chief executive Ron Pritchard says the pre-tax profit of £47,853 marks a significant turnaround of the group’s performance.
On Clarkson Hill’s capital position he says: “Further to the announcement made by the company on July 23, 2010 the board remains in discussions with the FSA about the regulatory capital requirement of the company, and is seeking a number of ways in which to resolve this issue in a timely manner.”
He adds that trail income from existing client investments currently makes up over 20 per cent of the half year’s income, and says this revenue stream continues to grow significantly.
As at June 30, 2010 the group had a total equity of £142,866, compared to £581,234 at the same time last year and £95,013 as at December 31, 2009.
Clarkson Hill says the group continues to trade in line with the board’s expectations.
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