Paradigm's Honister bid is only for advice arms
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Paradigm Partners founder Paul Hogarth’s bid to buy Honister Capital does not include profit-making direct-to-consumer business Willis Owen, Money Marketing understands.
The proposed deal would only see Paradigm take control of Honister’s advisory businesses Honister Partners, Burns-Anderson and Sage Financial Services.
Money Marketing understands that regulatory approval has yet to be granted for any deal. Paradigm and Honister both declined to comment.
According to Honister’s latest trading figures, the group made an operating profit of £468,000 in the six months to March 31, down from £2.2m in the six months to March 31, 2010.
Honister Partners, Burns-Anderson and Sage Financial made a combined operating loss of £710,000 over the period, compared to an operating profit of £1m in the six months to March 31, 2010.
The group’s profits were driven by Willis Owen, which made an operating profit of £1.18m over the same period, down slightly from £1.2m in the six months to March 31, 2010.
Honister’s three advisory businesses have around 1,600 advisers between them.
In September, Honister Capital revealed it was revising its charging model in a move which is likely to see advisers pay more in charges due to increased business costs.
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