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Cavanagh to look at buys as profits leap

Cavanagh Group’s profits leapt by 50 per cent to £1.5m last year from £1m in 2006.

The adviser firm saw revenue rise by 18 per cent to £16.6m from £14.1m.

Acting chairman Paul Sinnett says the firm will be considering further acquisitions after buying employee benefits specialist JRG Financial Consultancy last November for £5.3m.

Sinnett says fee-based revenue and recurring income now make up 40 per cent of Cavanagh’s turnover, which he expects to increase next year when JRG’s trading is included.

CPRM, the group’s specialist actuarial and advisory service, saw 58 per cent of its business come from recurring income, compared with 52 per cent in 2006.

Cavanagh saw clients’ assets on wrap products increase from £55m in 2006 to £90m in 2007, with additional assets on other platforms in excess of £160m.

Average productivity per adviser increased 14 per cent, from £239,000 in 2006 to £273,000 in 2007.

Sinnett took on the role of acting chairman after previous chairman John Campbell resigned from the board in January. Sinnett says: “Although we are operating in a particularly uncertain economic climate, we anticipate that the demand for independent financial advice will remain strong and this, together with a number of ongoing initiatives, make the board cautiously optimistic about the current year.”

Chief executive Andrew Fay says: “2007 has seen Cavanagh’s strong organic growth continue and as a result we have enjoyed a positive 12 months with good performance across all areas of the business.

“In 2008 and beyond, the group will continue to look to grow organically but we will consider suitable acquisitions when and where the enhancement of business and shareholder value can clearly be demonstrated.”


Positive feedback

Let’s get over those gloomy winter nights and open our eyes to look at spring which is doing its best to raise spirits. Birdsong is waking us all and, on my morning walk with my dog Max, I have been interested to see daffodils, tulips and now bluebells popping up in gardens and riverbanks. The golf clubs have even had an airing (on the driving range, of course) before seeing the green grass of a proper golf course when the sun gets higher in the sky.

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