Honister Capital makes £1.5m profit
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Honister Capital made an operating profit of £1.5m between June and the close of its financial year on September 30 last year.
Honister says £1m of its profits came from the advice businesses and £500,000 from direct-to-consumer business Willis Owen.
Honister generated revenues of £30.4m.
Honister Capital was formed last June after Money Portal was placed in administration with debts of over £52m. TMP subsidiaries Sage, Burns Anderson and Willis Owen continued to trade under the Honister Capital umbrella but its national arm Bates was placed in administration, with advisers transferring to new entity Honister Partners.
The firm is backed by Monsoon founder Peter Simon, has no bank debt and had an overall cash balance of £11.3m at December 31. It has around 1,400 advisers, 100 fewer than Money Portal did in June.
In the 12 months to September 30, Burns Anderson made an operating profit of £300,000 on a turnover of £30.9m while Sage Financial made £1.3m on £28.3m turnover. Willis Owen, with a margin of 98.7 per cent, made an operating profit of £2.1m on £2.7m revenue.
Chief executive Mark Lund says: “This is a strong start for our new company, especially when we consider the wider economic environment.
With the new group bedded down, we are well placed operationally and financially. Our priorities are threefold. We must get ready for the retail distribution review, continue to give the best possible service to our advisers and business principals and structure the group so it can accommodate independent and restricted advisers.”
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Readers' comments (2)
Anonymous | 25 Feb 2010 10:14 am
So lets get this right, a company goes bust, dumps £55m debt onto the market with an 'I'm alright Jack!' attitude and then crows about £1.5m profit. By my meagre mathematical reckoning, that makes a running £53.5 million loss!
And where in the figures is the P&L for Honister Partners, the advice arm that went bust.... sorry, 'into administration'?
Mark I don't blame you for what you say, you have too, both for internal politics and to look good to the wider market (for future floatation) and the FSA, but a more honest approach (I know, how silly of me!) would have been; 'this is ok, but given the debt we owe the market, our advisers and customers, who have had to pick up the debt we so casually waltzed away from, we will be endeavouring to increase profits over the next period to repay what we owe and then forcing the resignations of the people who ran the business into the ground'.
Ahh well, we can only dream!!!
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Anonymous | 25 Feb 2010 10:48 am
£1.5M profit? It's a shame they can't share a little of that with their admin staff who haven't a pay increase for several years!
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