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BBB boosts profit and productivity

Despite losing advisers, Berkeley Berry Birch IFA group has achieved a profit in the last six months and increased productivity.

The group made an operating profit of 68,000 to September 30 this year compared with a loss of 3.2m last year.

But the results reveal that the group has lost 58 advisers since September 2003 and now has 774 advisers. Finance director Craig Butcher says some advisers opted for the directly authorised route ahead of depolarisation.

He says the loss is typical of a market trend which has seen networks review productivity within member firms and weed out less profitable individuals.

Turnover at BBB has increased by 12.5 per cent to 35m from 31.1m. On an annualised basis, productivity per adviser has increased from 79,000 to 88,0000.

The results show that the company now has 10.9m in cash at the bank, which Butcher says reflects the firm’s stability in the market.

It also announced plans to merge the financial advisory and network division to create one enlarged division headed by financial advisory chief executive Mike Cleary.

BBB is waiting to hear the FSA’s formal response on the findings of the investigation into the closure of Berry Birch & Noble Financial Services.

Butcher says: “We have never been a group that has tried to get a massive number of advisers in but we have worked at increasing productivity which is significantly higher than some of our peers which are typically down in the low 50,000s.”

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