Paradigm halves loss and aims to double advisers
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Paradigm Partners is planning to double the size of its IFA network, Paradigm Financial Advisers, from 200 to 400 by the end of the year.
In its third year of trading, Paradigm Partners posted a pre-tax loss of £388,165 for the year ending March 31, 2010 against losses of £766,436 in the previous year.
The firm made an operating profit of £519,971 for the year, which excludes member remuneration costs, a turn-round from a loss of £224,659 for the same period in 2008/09.
As at March 31, 2010, Paradigm’s liabilities exceeded its total assets by £2.69m, with total net debt of £1.93m.
The business has an outstanding loan to chief executive Paul Hogarth of £2.3m which is due for repayment in 2015 at an interest rate of 9 per cent. The firm spent £278,406 during the year on its own racing team and the vehicles are owned by the firm.
Hogarth says: “On the network side, we expect to have 400 appointed representative firms by the end of the year. We currently have 200. We also expect to grow our IFA support services business, Paradigm Partners, to 370 firms by the end of the year. There are 320 firms on board at the moment and we want to cap it at 500.”
Paradigm’s investment management company, Prism Capital Management, has £66m in its three existing funds and Hogarth says an additional fund will be launched in 2011.
He says: “Prism funds are just over a year old and we will look to launch some more funds within that range as assets grow. There will be a fourth one, I would imagine some time next year.”
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