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Avalon reports £66,000 pre-tax profit

Avalon Investment Services has reported a pre-tax profit of £66,000 for the year ending 30 June, 2011, a significant increase on the firm’s £3,702 profit in 2010.

The platform’s accounts show assets under administration on the platform increased 37 per cent from £150m in 2010 to £205m in 2011.

Turnover increased 23 per cent from £1.5m in 2010 to £1.9m in 2011.

A statement in the accounts from director Harry Kerr (pictured) says: “During the year stockmarkets continued to recover from the low levels following the credit crunch. The better investment environment is reflected in the improved profitability of the company.”

Thomas and Thomas Financial Services managing director Darren Lloyd Thomas says it is difficult to tell which platforms will succeed post-RDR.

He says: “It is all about who can squeeze the most margin out of their platform in order to build profitability. We have seen many platforms take an awfully long time to make a profit and some are yet to do so.

“One of the challenges is that it usually takes a lot of assets under administration before a platform reaches that stage. On the basis of Avalon’s figures it seems that in some cases it may be easier for a smaller platform to make a profit than for some of the larger guys.”

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