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7IM profits up 12% despite £123k FSCS hit

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7IM director Justin Urquhart Stewart

Seven Investment Management has posted a 12 per cent increase in pre-tax profit for 2012, despite being hit by a £122,892 Financial Services Compensation Scheme levy.

The company has posted a pre-tax profit of £2.8m for the year to 31 December 2012, compared to £2.5m pre-tax profit for 2011.

The results show 7IM has set aside £15,000 within the 2012 accounts to cover FSCS interim levies. It has also had to pay a further £58,000 following recalculations of the interim £326m industry levy for 2010/11 which was mainly triggered by Keydata claims. Of the £58,000, £50,000 was accrued in the 2011 accounts.

An additional £50,000 has been accrued in last year’s accounts to cover any further levies relating to years up to 2012.

7IM says its total FSCS levy for 2010/11 came to almost £400,000.

The results also show assets under management are up 21 per cent from £3.8bn to £4.6bn.

7IM chief executive Tom Sheridan says: “Compensation levies from the FSCS continue to be significant in the context of the company’s profit and loss account, with a major issue being the difficulty in predicting their magnitude.

“Despite the cost of the additional levy, the strong asset numbers combined with continued tight cost control enabled the company to achieve a profit of £2.8m. This performance is on budget and better than the prior year and the company considers this to be satisfactory.”

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