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Caerus profits drop 76% after Paradigm deal

Pre-tax profit at Caerus Capital Group fell 76 per cent to £300,000 in 2012 following the acquistion of Paradigm Partner’s network arm Paradigm Financial Advisers.

The company made a profit of £1.23m in 2011, which included £600,000 from a previous disposal of assets.

Caerus agreed the deal to acquire Paradigm Financial Advisers in October 2012. It is currently awaiting regulatory approval to complete the transaction.

Last year Caerus also sold its majority stake in Allium Capital, which helped designed the funds behind its subsidiary Caerus Portfolio Management.

Total turnover rose 7 per cent from £28.3m in 2011 to £30.4m in 2012. Administrative expenses went up by 27 per cent from £4.1m to £5.3m, while wage costs shot up from £500,000 to £1.7m.

Average gross revenue per adviser dropped by £6,000 to £164,000.

Caerus chief executive Keith Carby says: “The directors were targetting a higher profit for the year but consider the result to be satisfactory when taking into account the high degree of investment in RDR preparation and the ongoing cost of capital transactions.

“Despite the marginal reduction [in revenue] from the previous year, which the directors belive to be partly attributable to the ongoing harsh trading environment and the high level of adviser focus on RDR preparation throughout the year, the level of adviser productivity has exceeded company forecasts.”


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